RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:$5.5 Million in New ContractsAgree completely. Great post. Earnings estimates are conservative also lots of upside.
kingscorpion wrote: So you are wondering how they plan on making revenues in $40 mil and above well The $91 mil contracts CVX has, and bidding for over $367 mil are actually for 2 years revenues $45 mil and $45 mil and by then CVX will have more contracts signed, to continue beyond the 2 year revenues This $45 mil revenue for next year is enough to push CVX share price to $3 mark You know the fix cost per annum is $20 mil so with revenue of $40 mil and above, their net earnings will be $20 mil Divide $20 mil to 132 mil shares =.15c profit This means PE= .46c .15c= 3.06 is considered extremely cheap The sector is expected to become hot next year and so the PE multiple can will be pushed up to 25 -30. In CVX s case a PE multiple of 12 to 22 can be achieved and with that the s.p is a minimum $1.84 to close to $3 just based on earnings. Contracts signed. Bidens infrastructure plan. If government gives CVX part of COVID relief fund. Acquisitions. All push the s.p further up