Ann: Appendix 4D & Half Year Report, page-53

What do you reckon the share price will be when SMN has earnings of $85 million?

That is the number on which I based my price projection.

By the time those earnings are achieved the number of shares on issue will have increased. That is the reason the original $20 target will now be marginally less. Do your sums on a suggested P/E of 30. When SMN has achieved its goals & becomes a steady dividend paying major company, the P/E will fall to 15 or lower over time. As the dividends regularly increase the share price will edge higher than the original target.

It would not take too many airlines to come on board & eventually have their fleets fitted with sensors to achieve earnings of $85 million. The reason the $85 million was chosen in the first place is that it was the earnings required, based on the number of shares issued at the time, to achieve a share price of $20 with a P/E of 30.