Thats right. Over the next few yrs we'll see a div yield of 8-9%...

Thats right. Over the next few yrs we'll see a div yield of 8-9% based on todays SP.

Its one thing to calc an eps figure and apply a multiple (pe) to arrive at a realistic SP. However, there is a lot more to a valuation than eps. There is the also EV and NAV for example. A simplistic model doesnt account for this. A factor that is missing from pe is cash. If $1 of the SP is cash then eps could be zero but the SP should still be $1. Its the same logic with NIC. There is an intrinsic value to the cash generation, but more importantly the plant and equipment. You cant build RKEF lines anymore and HPAL is going through the same cycle of growth in Indonesia. Acess to this and other things like financing and sales pathways is invaluable. Its really, really hard to replicate the opportunities afforded to NIC and the co. has excelled in building the business relationships that make this possible.

Whilst this will be another tough yr for the PoN, it's also where the real money will be made from a investor perspective. Buy the dip has never been more true in this instance. Remember NIC has proven it is profitable at the bottom of the cycle.