In valuing a company it is always best to take a conservative approach, the market has a habit of disappointing over-exuberance – but I dearly do wish this same market would pay heed to your methodology of valuing stocks; i.e. applying multiples to a DCF valuation! Once one starts introducing multiples to a DCF valuation for ‘might be’ scenarios you’re entering the twilight zone of blue sky pricing; nice if you get out in time as these have a nasty habit of not lasting and crushing the unwary in the process. As is apparent that the market seems to take the same conservative approach, as this stock’s price appears to be very tightly controlled and managed by larger holders, as I presume are either you or I, and seems never to be allowed to veer too far off their valuation modelling. Nevertheless, still a great stock with good upside for the patient, and with an increase in the POS, increased production and further exploration success, higher prices will come.
CCU Price at posting:
71.8¢ Sentiment: Buy Disclosure: Held
