TSXV:AAA.P - Post by User
Comment by
JR__Ewingon Oct 11, 2013 8:36am
127 Views
Post# 21809606
RE:RE:RE:2011 vision - AAA $50.00 at time of production
RE:RE:RE:2011 vision - AAA $50.00 at time of productionI'm not an expert but in my opinion, for AAA to be at $50, they would need to produce 3 MTPY, that their number of shares is not less than 300 millions, that the price of potash is above $700, and that the average P/E ratio in the industry reaches the 2008 level (near 20). I don't see any of these conditions happening by 2020.
Another problem in this hypothetical scenario is that their tax holiday is for a period of 8 years. By the time they would reach 3 MTPY, their tax holiday would be over.
Personally, given the current price of potash and average P/E ratio in the industry, I see AAA trading at $1.50-2.00 when we reach full production (1 MTPY), which is a nice 300% gain from the current level.