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Fred, WAG; It looks like Lev thinks the phosphate patent is worth about $18,000,000 in earnings per year over the next 1-2 yrs. Let me explain. A doubling of the stock price would amount to roughly 180,000,000 additional capitalization. At a PE of 20, this amounts to approx. $9,000,000 in earnings. The market is forward looking but would also discount this figure in valuing the stock. Anticipating a 50% discount, Lev could be estimating about $18,000,000 in earnings or $.60 per share. This will not sink in until there is a PO and analysts start following the stock. Outyears are anyone's guess, could be substantial. |
