agm, page-9

Km
have said 30% compound to allow for bear market etc.Bull markets dont last for ever. However for the next 2 or 3 years the rate will be above 30%.

At the end of dec 06, I would estimate profit to be 35 to 40M in the following year 07/08 so valuation is highly sensitive to market conditions at the time.

In a bear market Forward PE could be as low a 12 and in a crazy bull could be as high as 30. Using say 90M shares on issue and a profit of 35M this would give a price range of $4.66 to $11.66 so the average is $8.16.

Also when looking at profit you have to consider that RDF is currently paying no tax and will use up it's tax losses by the end of next year so at that point the company requires a 30% growth just to report the same NPAT

I have already retired on this stock. I wish you luck in your retirement