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Gold/Mining/Energy : Micro-Fine Gold Plays - Franklin Lake, etc.

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To: Victorio who wrote (476)2/28/1997 10:58:00 AM
From: Larry Brubaker   of 615
 
Robert: As of today, I have taken a position in CNA. With their deal to get $3.6 million per year of cash flow, the stock should be worth $4 US on the basis of this deal alone.

Calculation: take the $3.6 million cash flow times 10, for a price to cash flow ratio of 10. This equals a market cap of $36 million. Divide by 9 million shares outstanding and you come up with $4 US per share, on this deal alone.

Currently trading at about .88 US.
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