TSX:SRU.UN - Post by User
Comment by
rogerouton Jun 04, 2007 8:22am
317 Views
Post# 12885687
RE: here''''s my take
RE: here''''s my take"rule of the thumb value of the company's shares multiply the $9.1 billion x 10% then divide by the # of shares outstanding"
I use 5% to 10% myself, I personnaly think that 5% is more appropriate for this deposit, so a share price closer to $1.40 is fair.
Unfortunately, SRU will need considerably more cash to advance the project, this will cause share dilution, wouldn't be surprised to see 350-400 millions shares outstanding by this time next year.
Also investor interest in SRU is very high right now, any erosion of sentiment, whatever the reason, will also cause a decline in share price.
hope this helps.