Hi,I suspect the market will wake up over the next week or...

Hi,

I suspect the market will wake up over the next week or so...The share price can't hang round present levels and a PE of 5 - 6 for long when analyst reports come out over the next week IMO.

Further on the 2 July stellar announcement..

Wholesale funds in general (note AAA 20 mil over life of each annual plantation investment) are to pay cash up front for investment in plantations. With annual plantation commitments also, this provides certainty to the business model v.s. MIS hold your breath.

Has anyone concluded the cash inflow expected as a result of the 780ha institutions + 300 MIS sales...TFS did note that present market guidance remains....minimum 10% growth in NPAT. With much greater wholesale / cash up front the 10% must be on the low side now...

So....thinking further on the implications of yesterday's stellar announcement..and it was - growing sales 6% on 2009 / shifting the business model away from MIS and in light of back ground obvious MIS disasters (got to feel sorry for the other players). TFS is now undeniably in a league of its own!

S0...Wise Owl May 2010 report noted:

Compelling upside at current levels. We retain our valuation of $2.73 and a 12 month target of $1.58, as the company remains on track to achieve 500 hectares of non-MIS sales this year.

Given the 500ha target has been exceeded (more cash in hand v.s MIS model of annual fees / deferal)and future model certainty, this must have a significant impact on the short term price target / valuation for TFC e.g. short term $1.80 IMO?

Thoughts?

May Wise Owl report:
http://tfsltd.com.au/library/file/research-reports/Wiseowl_TFC%20Update_30052010.pdf

SD