Allana worths at least 1,50$Hi everybody,
I think the people don't realize what really represents the deal.
There are 3 tranches of equity financing for ICL. Let's keep it pretty simple.
1/3 (it is not the reality case here, see the lastest press release)*0,47
1/3 * 0,54
1/3*0,60
=0,54
86 millions / 0,54 = 160 millions of new shares.
Let say that 86 millions of equity it is not enough and we want 86 millions more with the same deal (nothing really impossible here).
Total of new shares= 320 millions and the compagny will have around 620 millions issued shares.
Profits now. Let say a potash price of 300$ (pretty low here...), operating cost of (120 higher than expected) + loan of 500 millions at 10% (around 50 millions of interest per annum). Tax: 25%. Salaries, etc : let say 50 millions (pretty high)
300-120-50-50= 80
80*0,75 (1-tax)= 60
60/620= around 0,10 (do you really think that Allana will make a net income per share of only 0,10$?
with a price earning of 15
15*0,10= 1,50
1,50-0,51 (yesterday closed price)= 0,99
0,99/0,51= almost 200%
Feel free to comment... It is important to notice you should make your own dd before investing, This is just a simple example to show the Allana's value.