RE: Analyst target pricesAnalyst price targets can get you into a lot of trouble. I guess it's comforting to know that you are not stupid to be long a stock when professionals are also recommending a buy.
I am long this stock, but reduced a bit and am concerned about the last press release. If the next quarterly numbers are bad, I don't see how the shareprice will continue to rebound. In this market it just seems like a co. has to be constantly knocking the ball out of the park to even keep the SP at a reasonable level. I hope that I'm wrong. I also have trouble with valuing this co. based on so much "goodwill". Perhaps someone here has an insight on this goodwill.
From the latest NR:
"The board recognizes that many investors will be disappointed by our decision to reduce the dividend," said Kanee. "Our most recent cash flow forecast indicates that the operating issues affecting the first half of the year continue to affect our results, and have in fact been exacerbated by the weak US economy. As a result, without a dividend reduction, the ratio would have remained above 100 per cent. With volatile and illiquid capital markets limiting the company's access to potential new capital, this alignment of the dividend with cash flow ensures that we will maintain that strength."