NEwing on volume, page-64

Considering the recent update from the company, I think Newing's forecasts from next year on wards could be quite conservative and he says so in the report.
"Again, I use somewhat more conservative figures for my earnings estimates and valuation. And it is not hard to see that International sales could be much larger than in the scenario I have outlined."
I think the part that he is being conservative about is the rate at which new lakes are taken on. I could be wrong but I would think that as the process is proven across more lakes, the Chinese may want more lakes treated as quickly as possible. The main thing holding that back would be how long it takes to increase capacity but we know that can be done quite quickly and at an affordable price. We could potentially see growth much more aggressive than Newing has assumed from next year.
In any case, his assumptions lead to his DCF valuation being $2.91. That is more than enough upside to keep me interested especially considering that DCF valuation increases going forward each year.
As for the recent large crossing which he believes was likely director selling to insto's, the positives to that crossing taken place - in his words;
"As for the institutional interest, it is a good thing for the shares to be held more widely. It will eventually add to liquidity and may assist in PET being admitted to higher ranks of ASX indices."
The point made in that last sentence is an important one as it would lead to more insto buying as PET enters the larger indexes.