RE:$7 Can target...but I don't know what he's talking about..OK...I get it now. It's terribly worded....basically he's saying that "IF" the cap ex were to blow out to some absurd level like 900 million the current P/NAV would be .53....it would be .40 even if cap ex were a ridiculous 600 million.
Given that it's going to come in at 400 million or less the current P/NAV is a ridiculously low .3
So if we get the PFS with a 700 million NAV and a cap ex under 400 million....which we will....the stock can easily double from here and still be a bargain.
That's how he gets the $7 can target.....he is being conservative and showing absolute worst cases on cap ex and how we would still be reasonably valued even if cap ex MORE than doubled...which is won't
Hope that makes sense....point is...in his terribly worded way.....the stock is dirt cheap and once the cap ex question is settled he has clients willing to buy.