OTCPK:TMBMF - Post by User
Comment by
dosperroson Nov 21, 2016 6:06pm
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Post# 25492284
RE:RE:52 week high. Comments, conjecture, allegations, & forecast
RE:RE:52 week high. Comments, conjecture, allegations, & forecast Yep, for sure.
The only challange there is that PE may be less suitable for firms like TMB that have got a lot of losses on the books. It means they will generate a lot of cash but the 'actual reported earnings' will be diminshed so they pay less tax based on carry-forward losses. That's why I like EBITDA metrics becuase it's cash-only.
Also, I checked out the forward PE. NYU has a table here. https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html They give 17.6 to the pulp/lumber segment. Let's round it down to 15. (Not that we need to, b/c 17 is low and the sector average is 29). Anyway, that's $7.20 a share which I think is reasonable. For example, I read an RBC report by Paul Quinn (a really smart analyst) who did a sum of parts valuation of TMB in 2013 and came out with $9.00 a share. Anyway, all good -- thanks for getting me thinking about PEs.