RE:RE:NPK hits $1.90There are a number of different ways to look at a stock valuation, as I'm sure you know, and I am looking forward to the metrics Stan uses or recommends.
One way that I've been looking at it is thinking about the transition from ~250k annual production to 2.5 million tonnes of production -- which is what they've set their mid term sights on. That will be roughly ten times the 2020 production. I don't know how long they estimate it will take them to get there (I don't think guidance has ben released), but I'm thinking that level of production is the next logical step to take and is likely in the minds of investors who are buing today.
Ciao wrote: Stan,
As you know, better to under promise and over deliver :-)
Besides the NPV that helps provide a valuation on the share price, what are the metrics usually assigned to fertilizer companys wrt P/S, EV/rev, etc. Perhaps after year end is released we can do some arithmetic. The biggest question will be accuracy in forward production and sales forecasts.
As the assumptions in the PFS approach production and sales over the next few years the gap between the current share price and the NPV should close rather quickly.