GREY:WFEMF - Post by User
Comment by
biznotstockon Aug 13, 2012 9:36pm
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Post# 20213300
RE: RE: RE: WOF Future Stock Price Estimation
RE: RE: RE: WOF Future Stock Price Estimation Ok, I get it...
But, you are making the assumption that 50% of net income will come from Sangdong Mining Corporation and the other 50% from the APT JV.
The margins on mining are not necessarily the same as the ones that come as a result of the APT JV. No one has seen the prices(ratios) which have been agreed upon. TaeguTec(IMC) Cutting Tools could very well be waiting for an (overly) discounted product at the end of the pipeline. IMC could have easily negotiated to keep the higher margins for itself by opting for 55% on the APT JV and staying at 25% on mining. If it was all the same, why not just go for 40% on each and simply merge the two entities? They clearly wanted to be in control as the middleman.
Anyhow, I guess if IR said so it must be right. They've always been right up to now...