not always the best action blindly following an analyst report:
1. $2.80 valuation is a 12 month target
3. they are factoring in 768m shares on issue thus the issue of 77m more share.
4. it follows they are assuming a very high level of debt financing
5. CPL have $32m in options cash and $60m in the bank
6. will probably need to raise $540m for CAPEX
7. at 70% debt financing, this leaves $162m in equity financing
8. divided by 77m more shares = @ $2.10 per share for capital raising
9. they have CRL trading at 10x 2015 earnings, 6x 2016, 5x 2017 earnings and 4x 2018 earnings
as i said, these earnings multiples make CPL expensive
the smart profits have already been taken on CPL
regards
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