How are you getting $5.90 using simple mathematical logic? NTA...

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Bailey241

1,160 Posts.

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01/09/21

11:56

Post #: 55744751
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Originally posted by Payam: ↑

Please hang on to these words: "The book value is just undervaluation - clearly the company wont sell its assets in these markets at cost price"

As I predicted the net tangible asset valuation of the SDG is base on cost only, and the company will not be selling these assets on cost only basis - as highlighted in the latest announcement the co made 24% profit so realistically we can ignore the NTA altogether as the only basis of determination of the special dividends.

A good indicator however could be inferred from dividend payments thus far this year that is:

At the start of the year NTA was $2.56 per share;
SDG paid interim dividend of 30c and final dividend of 20c total of 50c per share and now
NTA is $2.36 or thereabouts.

Simple mathematical logic suggests : $2.36 in the remaining net asset value could be translated into $5.90 per share in remaining future special dividends.

2 .36 x 50c = 5.90
20c
of course there are other factors but these facts are quite telling and on these basis the SP at $2.75/ share is significantly under valued.

Please DYOR and feel free to comment if you disagree with these assessments.

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How are you getting $5.90 using simple mathematical logic? NTA at $2.34 with $480m in inventory on the books. Assuming a 20% development margin, you add maybe $0.70 but that's pre-overheads and pre tax. Franking at maybe another $0.50 from here too, but still a long way from $5.90.

SDG Price at posting: $2.83 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

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