Hi blackburnFMG has a EPS estimate of $211 calculated from...

Hi blackburn

FMG has a EPS estimate of $211 calculated from estimated future revenue in 2009 which gives it a PE ratio of 4.1 which is low for this sector as the PE ratio is about 17 (BHP is 16.2) , this gives FMG a price tag of about $200+ a share in 2009 with current predictions.

That is why FMG is $50 and climbing and will continue to climb over the next two years.

I did read the latest presentation for POS, there is nothing new in it. the $2bil comment was made over a year ago in europe. by memory it surged then too..

the important factor is revenue and when it will make it. in the earlier ann the other month on the fast track you can calculate what sort of income they may have in 12 - 24 months, from processing 150kt P.A from that you can calculate their EPS and work out their PE ratio for that year, i calculated it in a earlier post this week at a share price of $2.20

PE ratio is a important guid to rating stocks, thats why all trading websites usually have the PE on the main company info.

If the stock has no revenue then there is no PE listed, if the PE ratio is low then people will buy and invest in it. if the PE ratio is high against the sector then people tend to sell or hold.

In all reality, nothing has changed with POS in the last 12 - 24 months, other than the new management, is that really worth a share price as high as it is now when the price tag of the stock comes down to revenue or predicted revenue?

people are see'ing FMG and loved the story of 5c to $50, they hear the director has moved to POS and thing they are going to get the same ride.. that is why this stock is so volatile and so high at present. I brought POS at 20c with the expectation to sell it in 2009 for maybe $2 it was a plesent suprise to see it hit past that just from nothing more than hype.