in Feb05 the brokers were recommending about 42cthe number of...

in Feb05 the brokers were recommending about 42c
the number of shares has risen from 645m to 1011m
the dilution would be 645/ 1011= 0.64
that brings the price prediction to 0.64 x 42c = 27c
then the predicted earnings were $14.4m to $15.7m

the earnings were actually $20m for 2005

the company says the 2006 profit may be 30-40% less

that would be at least $20m x 60%= $12m

now using the 27c based on at the most $15.7m(already diluted for number of shares increased)
the predicted price would be(all things being equal)
27c x $12m/ $15.7m= 21c lower limit(rounded up)

now if profit is unaltered at 20m
27c x $20m/ $15.7m = 34c(rounded down)