Someone correct me if I'm wrong but AUO are forecasting a post...

Someone correct me if I'm wrong but AUO are forecasting a post tax profit of $15-18m for 2004 with most if not all coming in the second half.

With 150m shares on issue thats earnings of 10c a share. This translates to a p/e of 6 at the current price.
Commsec gives the average p/e for the sector of 14.4 which means that AUO should be about $1.50 by my reckoning. Sure looks cheap at the moment.

I know they have some convertible notes on issue but on the other hand p/e ratios should be based upon pre tax earnings I believe. AUO could be heading for $20m+ pre tax which could justify a $2 share price.

Hope I'm right as I bought some yesterday. Big trades including about 300k @ 60c.

cosmos