Thanks Phantom! You are of course correct - not sure how I managed to screw that up, but anyway... thanks! :-)
OK, so fair value is $1.80 at a PE of 5! As I said I was being very conservative. I agree that a PE of 10 is maybe a bit fairer, but you need to factor in some degree of risk in taking on the project (i.e. iron ore markets *could* slide, environmental approval *could* be denied, etc.) hence the PE of 5. Taking risk into account is part of the "fair value" calculation, so I guess I was factoring in a 50% chance that things don't pan out well for the buyer.
$1.80 hey, at a fairly conservative valuation! Woohoo! :-)
PLV Price at posting:
21.6¢ Sentiment: Buy Disclosure: Held
