massively undervalued!!! earnings yield 11%

Check out these arguments.
Just a few facts

Earnings Forecasts
(05) 26.8 (06) 33.9 (07) 35.5 (08) 33.9
Earnings growth: 6%

Comment: growth is more than inflation

But here is the clincher.... the earnings yield.
Earnings per share 2006 = .339
Price = 3.04
Earnings yield = 11.15%
Dividend yield = 6.2%

Not bad? Better than any company I know. Please advise me of any that are better.

Imagine a product that gives 11% and can keep pace with inflation and probably a bit more.
Potential areas of growth amongst many are the Reliance nickel project and some sort of tie up with a Fortescue iron ore project.
In particular for short term traders can look forward to an ore upgrade from resource to reserve for the East Alpha nickel prospect in December.

Now look at this valuation using the Average PE of the stock


Average PE = 9.36
Av PE x (06) EPS = 9.36 x .336
$3.17

Comment:
No wonder there is support at the $3.17

Intrinsic value : $4.42 (discount cash flow equation to follow)


Other than the chart there doesn't seem to be any good reason for this stock to fall any lower. If you can find any let me know.