GTP 0.00% 12.0¢ great southern limited

one dollar today, page-30

  1. 198 Posts.
    komodoguy,

    So ? You still know _nothing_ about value.

    P/e has nothing to do with value.

    You have two companies:

        Company "A" makes a NPAT of $2m.

        Company "B" also makes a NPAT of $2m.

        Company "A" issues 1,000,000 shares.

        Company "B" also issues 1,000,000 shares.

        Company "A" floats at $12.

        Company "B" floats at $24

        This means that Company "A" has a P/e of 6.

        And Company "B" a P/e of 12.

    Wow ! Company "A" must be the CHEAPER buy !! Go for GOld.

    Not !

    Haha :)

    You guys are hopeless.

    What the hell does the P/e got to do with value ?

    How do you know the IPO price isn't a ripoff for either company ?

    Here's a hint:

        What's the cost of capital to make the profit ?

    Go get a fcking clue.
 
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