what can stop this stock, page-12

Mike,

Apart from assuring you that your $50 ps is deep in fantasyland, I cannot predict the sp in three years - far too many variables.

I look for growing resource base, healthy margins, high ROCE, potential cashflow, etc, management, and comparative value. I also consider a few scenarios to ensure there is sufficient potential, and that the risks are manageable. Ideally I will establish whether or not WSA represents a better investment opportunity than some other company I might otherwise invest in, eg MCR, OXR or BHP.

Then the pon halves or doubles, the sharemarket rises 100% or falls 50%, the sp does what it does, and dividends flow or not, etc. If you want to know the sp in 3 years try astrology, tea leaves, charts, or dear I say it, dodgy maths.

EL