valuable sleeping giant, page-4

The only correction I make to my calculations of AAR is to the market capitalisation.

Shares on issue - 501,068,000
Current sp - .058
Market capitalisation - $29,061,944
(not $27m as previously stated)

Correct information:
Earnings per share as at 31/12/06 - .34 cents per share
Current sp - .058
Price earnings ratio correct at 17:1 (slight premium to the materials resources sector of 2006 at 15.5)

No consider that AAR went from a loss in 2005 of $263,379 (.07 cents per share) to a profit in 2006 of $1,700,009 (.34 cents per share) and loads more gold is being processed and remains unsold. The p/e ratio of AAR on gold value alone will push AAR as a class performer in the resources sector for 2007.

Now add in the value of Koongie Park Zn and Cu ......the mind boggles on where AAR will be beyond 2007. Well and truly in the class of low to medium risk value investing.

A nice light Sunday read...Value investing (according to Buffet et al) ...enjoy :)

"For investors everywhere, price-earnings (P/E) ratio has become a very popular concept – with P/E ratios quoted in the financial press everyday. Why? Well, for a number of reasons.

Firstly, taking P/E into account in choosing which shares to buy has proven a tried and trusted formula for success over the long run. Don't believe me? Just ask investment gurus such as US billionaire Warren Buffett.

For the record, Buffett's counsel is to favour shares with a relatively low P/E over their peers trading on higher multiples. Secondly, P/E acts as a quality filter for making investment choices."
http://www.miningnewspremium.net/storyview.asp?storyid=64454§ionsource=s176

another good light read....
http://www.egoli.com.au/egoli/egoliEducationPage.asp?PageID=%7BCB974762-8DE5-48B3-9593-C724DD07C458%7D