By increasing the COS from 50% to 75%, it has increased the risked NAV for ED1 from 4cps to 6cps, and increasing overall valuation from 41cps to 43cps.
Given STX only had 25% of Booth and it was only risked at 10%, the risked NAV for Booth was less than 1cps, so failure of Booth had negligible impact on the overall valuation.
Even though my valuation is about 25% higher than those of Bell and Euroz and they are the pros, I'm still confident in my model. Even if I am wrong by 25% and the fair value is 33cps, there is still a 100% upside based on current SP. That's why one should actually be happy about the SP cos IMHO, it really does present one heck of a buying opportunity.
618
STX Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
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