Brian,we are living in some very weird times. a good example is gnet, the owners of the SI sight. it was $35 bucks last week and this week it hit a $145. when have you seen a launch like this. and they will make , I don't even know, ten cents a share? wow, 1000 times earnings. this is what I call cheap. amazon is expected to make $10 a share in 5 years, oh yeah, really now, who is smoking what. that is equal to $6 today. what the heck, at $450 the other day, only 75 times earnings yet to be earned. furbies, you know the furbie furry critters, $150 each for something that a Chinese girl makes in 1 hour. yes , she is paid under the minimum wage in China, .15 cents and hour.
Rex on the other hand, has 3.5bil in diamonds in SL, we know it is there and we will get it out sooner or later, we have SA fissures and on the horizon is Mauritania which , no doubt is an Amazon of a find . Say a conservative 500mm in diamonds and it takes 10 years to get them out. use a conservative 20% net profit, discount this over the 10 years. our profit would be a discounted $67mm or $6.7mm averaged out. 45mm shares or .16cents a share fully discounted earnings from Mauritania. US money, stock is at .95 Us. so we are selling at 6 times earnings. I think we have a way to go and $3 will be in the horizon by May.
vargas |
