GREY:HRIVF - Post by User
Comment by
bart_dcon Jan 07, 2010 9:51am
219 Views
Post# 16648814
RE: way over valued
RE: way over valuedyou guys drink way too much Wodka in Moscou.
I have a calculation exercice for you. I have been too lazy to do it myself.
Look up at what multiple HRG was trading beginning 2008 and then see what dilution has taken place to 'correct' your fair value.
IF you are an investor who knows this story, you would know that there was only a liquidity issue/crisis due to the refinancing of debt that could not take place end of 2008.
So if you know something about companies or economics then you would know that asset price or profit potential is NOT impacted by a temporary liquidity problem!
So you only have to 'correct' for the dilution since beginning of 2008.
OR you could do the following.
Just don't give a flying fc*k about past and start bottom up. You take operational cashflow and you apply a multiple that is the average of other intermediate goldproducers.
The first calculation I asked is 'interesting to know' the second one is what it is all about!!