While I am very positive on this stock Huntley's have made a mistake in their forecast. They are counting 100% of CP1's profit as going to ciy but ciy only owns 56% of CP1 (refer cp1,ciy annual reports, ciy's broker presentation about 1 year ago). CP1 will earn about 140m over the next 3 years from Martha Cove pre tax or $100m after tax. CIY will get 56% of this over those 3 years which amounts to about $56m. This will be split for 2004, 2005 and 2006 as say $7m, $22.5 and $26.5 for ciy. Therefore my forecast for ciy's NPAT for this year is approx $30m and for 2005 is $55m with EPS of 37c and 47c. $55m for 2005 is very good but a far cry from Huntley's $75m. I would welcome anyone to prove me wrong. The stock is very cheap atm but should improve when the option sale is complete and especially if it is included in ASX200. CP1 is good value atm too. cheers
CIY Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
