lok looking suspect, page-7

re: lok looking suspect...mr kolo Mr Kolo

You were saying......

I think most of the overly exhuberant LOK followers will be made to eat humble pie over the next few days. The selling has commenced and will keep going until the price reflects a true market value. With earnings of US3c for the quarter, that equates to annual earnings of 12c (no growth). Assuming 20% growth in EPS, that is US14.4c per share EPS going forward. At a PER of 20 times (generous) that is a price of US$2.88 per share for LOK. Converted back to LOK, that gives a value (full valuation mind you) of A$0.243 per LOK CUFF.

A bit of homework for Troskolo and others. At work today, give your brokers a call and ask them who has been the most active US brokers in LOOK over the past few days. I think you'll find that the firms making your "buy" recommendations were pretty active.

One last thing, why do you think everyone had so much time to jump on before the announcement??? The players with the real money had made their moves well before the chorus of "Hotcopper Buyers" were singing their tune.... and at much better prices. They just were waiting for the suckers to come aboard and take their over-priced stock off their hands. Put it down as a lesson learned.

PS I am a fan of LOOK/ LOK, but not at silly prices. I'll re-enter when the price falls below fair valuation, which no doubt will happen over the coming weeks.