Woops, the HTML didn't turn out too well. Here's a repost...

Woops, the HTML didn't turn out too well. Here's a repost without HTML markups:

==========================================================

There's something very fundamentally flawed about how you arrive at 64c :)

In particular, what assumptions have you attributed into that mysterious number "10" ? Where did it come from ?

Do you mean to tell me that the value of any company is just a factor of 10 times its EPS ? :) ... why not 5 or 2 or 20 ?

How do you know that 64c doesn't already more than cover all of GTP's FY2008 losses ?

What about for FY2009 ?

Heh.

Here's a hint,

If you had two companies:

Company "A" made $20m in FY2008.

Company "B" also made $20m in FY2008.

Company "A" has 1,000,000 shares on issue.

Company "B" has twice the shares on issue at 2,000,000.

This means Company "A" has a $20 e/s.

And Company "B" has a $10 e/s. Do you mean to tell me that your conclusion would be that Company A is "worth" more than Company B ??

Or that by your calculation, Company A and B's fair values are $200 and $100 respectively ?

Haha.

You guys have a misconceived idea of valuing companies.