Tesco Im with Homer...........Well nthat reads back a bit suspect doesnt it ? LOL
For any share is only worth a multiple of its earnings. So a company like UNI which now has a completely derisked start up to full productions is worth a fraction of that future earnings today dependant on the risk to achieve that level of earnings.
Why is it derisked you ask ???
Well we have over $50M in cash The worlds largest user of our product as our exclusive client. A fully funded indutrialisation program. $5M in support from the governor in our home state. A manufacturing partner that has already provided a proof of concept.
Plus all our future products......Ahh Im getting tired!!!
So you pick your own PE ratio to multiply the profits with to reach a future price. I use 10 to 1 the Griffin report says the USA is more like 34 to 1.......... nice
So with what has been published in the Griffin report we are at EPS of 50c in 2014. ($150M op profit 300M shares on issue). Now consider that most of the 2013 and 2014 earnings are discounted in their model and that we have all 5 years of capital budget up front today in cash......................
Even at 50c and 10 times earnings it $5.00 per share. At 34 times its $17 !!!!
My opinion is a lot higher than this based on all the derisked factors and the dominance our product will achieve.
Go team go!!!!!!!!!!!!!!!!!
UNI Price at posting:
$1.02 Sentiment: Buy Disclosure: Held
