Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : ALE/TSE Sleemans -- Ignore unavailable to you. Want to Upgrade?

To: woody who wrote (49)	1/14/1998 3:23:00 PM
From: Graham Dellaire	Respond to of 272

Drop is because ALE is trading at 25 times earnings... high for the sector. Now with 0.433 shares being offerred for each Upper Canadian Share that is further dilution... which means the PE gets bigger folks. So more overvalued... next Ale is using up valuable cash and or going into debt to make the aquisition. This all means less value at 6 + a share. Anything below 5 dollars though I would say would be fair value. At 4 dollars Sleemans would have a PE of about 18 which would be okay with the industry. My two cents. Graham