Current risked valuations from Argonaut and Patersons are 30c and 31c respectively. Unrisked valuations are $1 and 90c but neither of them have the expected uplift of the domestic Chinese gas price from $7 to $10 which would translate (due to the leverage) into a ~50% increase to earnings. Its a rough, back of the envelope calc but the point is the increase to earnings is material.
Only pointing out what the analysts are saying as consenus number and trying to understand what comfort you can get from their numbers. I think the message is you can pick whatever number you want that fits your perception of risk at the moment.
SEH Price at posting:
11.0¢ Sentiment: LT Buy Disclosure: Held
