proforma P<rying to forecast what might happen to P&L after the new contract with St Andrews kicks in.
Q3 results were 2.394million gross and 226K net income or .025eps
Liberty added 1 million/qtr to gross revs
Expect St Andrews to add something less so let's assume new total revs of 3 million/qtr.
Gross margin was .263% for Q3 and .23.2 for ytd.
Adding 600K X .232=$138K in gross margin.
Add after tax net of $100K to Q3 profits = 326K or .046eps
.046 X 4 = proforma eps of .185 for 2010. compared to C$.45 stock price.
Fwd p/e of 2.4
Price target based on 7 X eps would equal C$1.29 stock price vs current .45.
Market should eventually reward higher gross revs, margins and net profits. Mining should pick up in Canada as all metals are up and Nordex appears to have a superior product that saves money and equipment wear.