Alabama Graphite Corp. Com ABGPF

RE:Any idea what this is worth to the SP ?

[micromanager]

holder 21 Hard to say but I'll take a simple shot. Let's say in 18 months ALP is mining, processing and selling a minimum of 10,000 tonnes of value added graphite product per year.  Say the average price of the value add in a bear market sells for USD $5000 per tonne.  That's USD $50,000,000 revenue per year or $65,000,000 Canadian with a 10% net margin would be CAD $6,500,000 net income per year.  ALP would have to raise money for the mine and mill so depending if raised using equity we would be diluted or if debt then common shareholders would not be diluted.  Most likely this market will only support a large raise using debt with some equity kicker.  Let's say the equity kicker gets us to 200,000,000 shares out or at this SP a market value of $35,000,000.  The EPS per year would be about $0.03 starting in 2017.  Considering the company has millions of tonnes of graphite in their properties that cashflow stream would last literally for centuries so I would think with the demand curve we all believe will happen the company will produce and sell more than 10,000 tonnes per year.  So that means bare bones that ALP trades at about 5 times forward P/E today IF IT CAN GET TO MINE STAGE.  On BNN the other day I saw the average growth stock over history should trade at about 15 times forward P/E (12 months forward).  This calculation is very simple, many missing components both on the up and down side that need to be taken into consideration but it's a start.  The more graphite they sell of course the faster EPS will climb exponentially because of economies of scale.  If the price of graphite goes up due to demand then EPS will also rise exponentially.  Bottom line if ALP is going to become a mine it should be trading about 3 times higher (less a slight discount for the year wait to get into production) than it is today in a normal market - neither bull nor bear.