short term target, page-10

Hi rob,

Agreed - this method is certainly not suitable for RES (given we are dealing with projected income & the resource is still increasing).

There is no historical perfomance to use in a valation calc.

I just received an email from stockval:

Apparently a valuation for RES has been requested by a few other members however they have not included RES on their list of stocks analysed as RES has not made any money and their ROE is below:

Return on equity(%)
-37.4
-12.2
--
-100.3
-23.7
-14.1

Therefore, they are not currently profitable, and haven't been for past 5+ years.

Also, StockVal formula does not give a valuation if the APC ( Adopted Performance Criterion – future profitability outlook over the next 2-3 years) is negative.

Therefore it appears the Shaw's val is the best we have to go from at this stage.