not always the best action blindly following an analyst report:...

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