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22:35
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Originally posted by ContraryJ
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If you understood anything you would understand that Lynas cannot reach the PE you posted. I do not claim you derived it but because you posted it in the tone you did it says you endorse it. This is like when I was saying time to buy value stock and two days later you post Lynas is a value stock which is crazy. PE is the price earnings ratio. For it to move from today’s level one of two things has to happen. Profits have to increase. For this case 90 / 7.8 = 11.5 just over 40% every Q. Now if this happened many people would be buying including me so the price would be going up as fast or faster making 7.8 impossible. The other thing is that the price would have to fall by 11. Putting the price at 25 cents. What could cause this. The only thing I can think of is a total shut down by Malaysia., I do not think this would happen. If it did profits would be gone as well so that means the company is gone. Again the ASX averages 15 to predict a 7.8 PE would signal some sort of disaster is that what you are saying by endorsing this number. You posted the number so that indicates you thought it was good. Or do you post things you know are crazy just to make your point.
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The only thing that needs to happen to make 7.8 a reality is NdPr prices moving into the range of fair economic value over the next couple of years.
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