There are about 102 million SMN shares on issue but for ease of...

There are about 102 million SMN shares on issue but for ease of calculation call it 100 million.

If SMN earned $10 million, that would be about 10 cents per share. If the share price was, say $1.50 then the $1.50 divided by 10 cents would give a price/earnings ratio of 15. Similarly, earnings of $20 million or 20 cents per share would be a P/E of 7.5 or more appropriately, the share price with a P/E of 15 would be $3.00 per share. Consequently, if you believe a P/E of 15 to be reasonable for SMN then for every $10 million earned per annum or 10 cents per share the share price would rise at the rate of $1.50 per 10 cents per share of earnings.

On the above basis, when or if the earnings reach $100 million or $1 per share the share price should be approximately $10.00.

With the share price holding above $1.40, the wave count still appears in tact.