Ann: Acquisition of New Zealand aircraft maintenance business-SKB.AX, page-7

objctv,

Very hard to forecast earnings, especially in a coy like this that has acquisitions and consolidation of industry in mind.

Their valuation is fair, but does it clearly does not represent how others see things at the moment? The question is whether the p/e is justified, which would reflect sentiment and future outlook. For a growth stock with a bright outlook like this, I think a p/e of around 30 and even 50 is justified. As earnings increase (as we all hope) then the p/e may come back. We could then see the SP settle around 1-1.50 for awhile. But in the meantime, there is no point (in my view) just waiting for a SP to come back to a price where an analyst thinks true value is, otherwise we are not really investing.