ThoughtsI just picked up another 500 shares. I have been searching for other good buys but nothing comes close to BEV using all my analysis techniques so I will extend my overweight position even further. Some considerations....even without another facility, they can still earn about $1.30 over the next 12 months with some price increases...a PE of 11 at current price of $14.30. EPS growth over those 12 months would be 75% giving a forward PEG of .15. The estimated EPS for 2 years from this date, after Q1 2005, would be about $2.00 giving a PE of 7.15 at today's price. The average annual EPS growth rate for those two years would work out to 64%. A conservative PE multiple the same as today, 19.3, would give us a share price of $38.60 (all numbers in CDN$) for an average annual gain of 64%.
Now of course, there are things that could go wrong & the targets may not be met. However it seems to me that there is a lot of room for error & it could still provide very desirable returns over those two years. Cheers!!!