Great Quarter!So it seems they announced that they lost
.03 per share, which is great news. On September 30 the year to date loss was
.14/share, which means that they made
.11/share in Q4. This was the first quarter without US operations and without any GM involvement, so this could be said to be their first normal quarter. They also said they had $10MM of cash. If you run the math:
.11/share per quarter * 4 quarters = ~
.44/share per year (assuming no growth)
$10MM cash / 20 MM shares = ~
.50/share of cash
Apply a 4.0x multiple to EPS and add cash -> 4 *
.44 +
.50 = $2.26
Apply a 6.0x multiple to EPS and add cash -> 6*
.44 +
.50 = $2.70
Current trading price is
.96. Should be trading in the $2- $3 range at a minimum, but more reasonably at $4 - $5 if you factor in the growth at Ford and the US automotive industry that is expected.
Anyone have any commments?
American Investor