Hey fellow sheiks, just got this from Disallowed quarterly:Dear...

Hey fellow sheiks, just got this from 10bagger quarterly:

Dear subscriber,

Ten Bagger Quarterly's Recommended Portfolio is now up 17.5% over the past month, compared to a 4.3% rise in the benchmark Australian All Ordinaries Index. Over the first four months of 2007, the Portfolio has put on a stellar 51.8%, against a 14.0% rise in the All Ordinaries.

Target price upgrade for Alliance Resources

In view of recent drilling results, we have upgraded our valuation of Alliance Resources from $3.00 to between $4.11 and $7.97 per share, based on two valuation methods:

1. DCF basis

On a discounted cash flow (DCF) basis we calculate a value of $4.11 per share, comprising:

(i) $3.71 for Alliance's 25% share of the Beverley 4-Mile discovery.
(ii) $0.15 for Maldon Gold.
(iii) $0.25 for exploration potential.

2. Forward P/E basis

On a Forward P/E basis we value Alliance at $7.97 per share. This valuation is based on a multiple of 10x forecast 2011 Net Profit After Tax ($1.63 billion for the Beverley 4-Mile uranium project, of which $401m would be attributable to Alliance), discounted back to today's dollars at the Cost of Capital.

Full workings of our valuation are available for subscribers to download at www.tenbaggerquarterly.com/downloads.html

The $4.11 DCF valuation reflects the underlying value of Alliance Resources and forms our new price target. The Forward P/E valuation of $7.97 per share is useful in giving an idea of the potential "blue sky".

Summary

Alliance Resources remains a strong long term HOLD.

Regards,

the team at Ten Bagger Quarterly