not jocking at all. Its' a simple practical market 123. it's a matter of risky/dividend to determine the SP, not purely on company PE. 90% of companies with earning around $0.35 will have their SP about $10-$14, companies with earning about $0.6-0.7 per share usually their SP is around $16-$20, which for CCP is easy to achieve, eg., achieve a $25m profit in the future. If CCP can achieve $100m, which is about $1.4 per share, then CCP will be $35-$40, why, because any company has such earning, the market will value its sp at least $28-$35.
For CCP, because of its small shares on issue, it would be hard for funds to get in without a compromise on the return, and that will drive the sp actually higher than those Banks who have similar earnings. Well, you may rubbish my method, but I am correct most of the time on blue chips, especially the top 50 of any markets, US, UK, or whatever.
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