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Gold/Mining/Energy : SOUTHERNERA (t.SUF)

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To: gemsearcher who wrote (4706)10/13/1999 12:43:00 AM
From: russet  Read Replies (2) of 7235
 
Tell me which number is aggressive, and why?

I agree that producers that have sales in excess of $500 million, greatly expand their multiples towards the 12x or greater. That is the goal.

Not sure of the other companies you mentioned, but DMM is one I've done a lot of research on. Current earnings show eps approaching $0.32 per share at basically full production,...last quarter. 4 x $0.32 = $1.28 per year. Current share price of $25.00 gives a 19.5 multiple, which appears really excessive given expected annual revenues of about $140 million, considering they are likely high grading at the present time.

Tell me I'm wrong!?
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