sbb today, page-70

cheers gordon,

Just a point of comparison, that has myself attracted to this one. I have followed many material commodity stocks over the years, and there have been many that have failed, but typically have a swan period which they can fly on an idea, a perception of being undervalued.

Oil companies drill for oil, and find water and dirt.
Exploration companies continue to sell the dream, and dilute needing to raise new capital.
Sometimes even development companies run into trouble with land owners.

So there are shareholders in every case that get their wealth destroyed, based on buying shares from an over inflated analysis of the stocks future earnings, if it ever does so. Even brokers put out valuations on these stocks, with an assumption of development success risk weighted in. But they never consider the zero end game effectively. Valuation that might mean 10c risked, might mean 1.00 unrisked, but could mean 0.00

What proportion of explorers get to production ? or are they just dreaming. But thats the nature of the risk reward you get with the materials sector.

Now compare that with SBB.

No dilution. that is an incredible factor here. We are in business and profitable. We will never tap shareholders for new money, why? because we make money.

PE 3, sp 10.5c target 35c on real cash earnings.
And can grow year on year to 1.50 in a few years.
Where is the risk?

That the money in the bank accounts are Monopoly ? Grant Thornton say its real.

So you have 3x to fair value, and 15x in a few years.
Pretty hard to top that, when you weigh that other stocks risk factors, vs SBB risk factors.