RE: RE: RE: RE: RE: RE: Are 10 times earnings outCosmicpump,
I never said that this stock will go bankrupt what I say is ur valuation 10 times EBITDA is unrealistic. In ur model u have to take into account the debt and EBITDA does not take it into account at all. I know what I am speaking about I was financial analyst 6 years ago.
Free cash flow take into account the debt coz it is the cash flow generated by the plant after paying the debt and interest of the debt. Geothermal companies are valued at around 3 times free cash flow now
even if u really want to take into account EBITDA (coz u are stubborn), other geothermal companies are valued at around 1 to 2 times EBITDA now.
Ur 10 time EBITDA does not make sense that is why the market is now paying 29 cents for SJT1&2 so around 1.5 times projected EBITDA for 2013 and around 2.5 times Free cash flow projected for 2013.
Now taking into account bad balance sheet and another potential costs overrun on SJT2 RPG will go at 20 cents.
So stop with ur 10 times EBITDA, it does not make sense. People are laughing at u. U can never find any company worldwide trading at 10 times EBITDA and even 4 times EBITDA u can count them with my finger.
So stop with this it does not make u credible