Re "Intrinsic value is a rubbery figure"
I aspire to calculate my own intrinsic company valuations, but have a long way to go still. I like reading the 'workings' of valuations more than simply looking at the 'headline' figure, as this helps me form my own valuations after I apply a large amount of 'common sense' to their calculations.
I then add to this the probable reasons for the difference between the current price and the current value. This could be more important that the actual valuation, as it incorporates the 'events' that could result in a reduction in that difference. For me also, this process of discovering reasons for the difference between price and value is very much a 'gut feeling' driven process.
For MEL, fear of loss (due to poorly planned and communicated) NSW Gov. policy announcements combined with increased media coverage of anti-CSG protests has been the main reason for the recent sp drop away from its 'intrinsic value', and I believe that it will rebound as those fears disappear.
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