post cap raising share price, page-30

I spoke to a long term investor / employee today.

Regarding BSL’s woes, he said “the price will bounce back”
He said that quite a few times during our conversation in fact.
He was referring to the $10 price per share of 2008.

So for those optimists with the same view, before you jump in and throw more good money in, here is something to think about.

In 2008 BSL had around 950 million shares on issue at around $10.
That equates to a market capitalisation, (value of the company)of $9.5 billion (by the way, I did that calc’ in my head)

After this capital raising, there will be 3.35 billion shares on issue.
For the share price to recover back to the $10 mark, BSL the market will have to value BSL at $33.5 billion.
A big ask!

Slightly more realistically, let’s say BSL does expand production again and mange to build up the business over the next few years. Back to the valuation of the 2008 good times. ( A valuation which was considered bloated by many analysts)
A big ask again but let’s be reeeaaallly optimistic.
Assuming no more shares issued, with 3.35 billion shares out there, a market cap’ of $9.5 Billion, equates to $2.84 per share.

Yep, that’s the very best you can hope for, so forget the $10