That excerpt was from huntleys analogy of pcg a couple of months...

That excerpt was from huntleys analogy of pcg a couple of months ago;

he still hasnt changed the valuation and EPS forecasts

the report values the company at $1.20 and mentions the fact that this half wont be as strong as first.

valuation on huntlerys still sits at $1.20 a share

like i said after july 1st invesorss will start looking at financial yrs '07 and 6 months later '08 will come in2 play

theyve said that 10cps is the outlook for the yr, and like i said previous post, its safe to say that with investment in oil+industry still strong for many yrs, that EPS can be within 11.5-12cps.

At 78 cents (due to bad sentiment) this is a no-brainer.

Whats the probability that investment in oil+gas will taper off next yr or the yr after???

Sure sentiment might lessen, but the 'fundamentals' for this company to make good solid profits are definately there.

if sentiment tapers off, then simply the P/E will drop a little;

With EPS 13.2 forecast for '08 in our previous analogy, give it a P/E of 8 (like now when sentiment is down) and you still have a EPS of 10.56cps.

So get in now and worst comes worst the stocks worth $1 on a P/E 8; In a good-case scenario its worth around $1.30. Like I said the '08 forecast will come in2 play within a yr.

Then again if they secure a strong order book and more and more contracts ala MAH, then the P/E could be slightly higher than 10 with a little more support from fundies.

Strong growth prospects in a strong market for yrs to come suggests a P/E of at least 10 in my books during good sentiment and 8 during bad.

At 78cents, you can see that on forward multiples its got minimal downside and A LOT of upside - and thats what I want from an investment!