re: Ann: JSW Acquisition and FY13 Results Pre... gosouth,I've...

re: Ann: JSW Acquisition and FY13 Results Pre... gosouth,

I've played around with some figures, although they are a bit rubbery because we don't know the profit margins from the manufacturing division.

Assuming they reach their F14 revenue estimates and using a similar profit margin percentage as F13, then EPS should be around 7.7 cents, giving a P/E of 4.3. The current sector P/E is 10.6.

So even by being conservative and giving a P/E of ~6, it should have a share value of ~46 cents. That would be my short term target.

My current guesstimates are for a short term target of mid 40's and a 12 month target of mid 70's.

Obviously none of those assumptions include growth through new contracts or synergy savings because of the combinations of the two parties becoming one entity.

I'm keen to see the Baillieu Holst report for their thoughts on a 12 month forecast. Guessing it should be out this upcoming week.

Cheers.