wots happening, page-6

What do we expect to happen?

UMC forecast revenue of $550M for 2008.

Whilst that is excellent grwoth, last year their profit before tax margin was 7.2%. Multiply that by $550M and we get $28M NPAT. Divide by 192M shares on issue and get 15 cents EPS.

Broker reports have forcast 16 to 19 cents EPS on $550M revenue.

UXC has a dividend payout ratio of 67%, unlike companies like OKN, that payout close to 100%.

Due to the payout ratio, I would place UXC on a PE ratio of 14, giving UXC a 30 June 2008 target price of around $2.35 to $2.45.

Currently price is OK. When it was $2.80 and I said it was overvalued.

Good luck

V