GREY:HRIVF - Post by User
Post by
bart_dcon Aug 15, 2009 4:35am
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Post# 16221508
numbers are great people
numbers are great peopledon´t let Severstal screw with your head.
If one looks only at the net profit figure you are being misleaded.
This write off of Prognoz can only happen one time, so if Q3 production is more or less the same then
we have a HUGE profit.
Can you imagine what the share price of would be at if HRG would report 0,03-0,04 net profit per share in one quarter.
Do the math people!
If I were Sprott or another big holder I would for sure drive the price above 0,40, starting on monday.
Although I am a little afraid that many people will just stare at the bottom line and head for the exit.
I do have two questions and I hope someone can give some feedback on this.
1. can Severstal now easily steal Prognoz at a depressed value by means of an asset sale to one of their entities?
2. how important is Prognoz for HRG valuation beacuse without income from Prognoz they are already making 0,03-0,04 profit per share per quarter. Does HRG have enough resources coming into production next couple of years to keep the profit up? If yes, then this stock needs to go up big. Otherwise it depends on how long production figures can stay at htis level, but even then I am TOTALLY convinced that the share price needs to be at 1+ (and I am being conservative here).
Thanks for your comments...
Bart
(Belgium)