Share Price Evaluations Kidlapik, Awesome compilation of information there!
Though I have some questions regarding the debt these companies have. At the moment I don't have the time to look into their debt positions. Now if SWY opts to using debt financing, our balance sheet isn't going to be that pretty which is a possibility in SWY having a lower ratio of market cap to value on expectations of this. Or if we dilute the hell out of our shares.... it will raise our value but not us investors' bottom line. It will be interesting to see how this pans out and at the moment I am not sure which route will be better for the retail investors.
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Aswell, what evaluation method would be best to determine future expectations given diamond, fuel and currency fluctuations to be nil?
I visit slide 36 (https://stornowaydiamonds.com/investor_relations/presentations/) quite often.
Take note that there are costs involved and many posters who see $10 in their mind (somehow) would require our market cap to be $1.5b and with costs/carat being nearly half, this would suggest SWY to be worth way over 50% of the in ground value. Now I am not saying this is impossible, but right now as it lays, it is. Companies can trade at many multiples of their revenue or net but there is no way someone would value diamonds beneath the surface before being brought up at more than they are worth above the ground. Some people are entitled to their opinion, just like me, but I believe any projections higher than $5 right now are setting themselves up for a let down.
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Does anyone have Laurentian's Report on SWY? I wonder how they derive their numbers? If no one has it I will send a request to them to see if I can attain a copy.
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Phares