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Gold/Mining/Energy : Trailmobile Canada TMX (formerly MII) -- Ignore unavailable to you. Want to Upgrade?

To: Wizzer who wrote (197)	12/14/1998 7:52:00 PM
From: csm	Read Replies (2) \| Respond to of 406

Anyone want to have a little fun by indicating what they think fair value is for a share of Mond? Here are some basics I've found: Sales for 9 months $88.1M. Projected sales for '98 - probably $115-120M. Earnings for 9 months $1.6M with 553K in 3rd Q. Projected earnings for '98 - probably $2.1-2.3M. Shares out - 28.6M THis puts PSR around 0.12 for 1998 and PE around 5.9 at 50&cent share price. I'll start by projecting 99 sales at $150M and earnings at 30&cent/share which is a net profit margin of just above 5%. Fair value might be a PSR of 1 and a PE of 15-20... that would give 150/28.6=$5.25 based on sales and $4.50-6 based on PE. I would subtract their per share debt of 70&cent/share to arrive at a fair value of anywhere between $3.80 and $5.30 in 1999. Take the mean of $4.50 and discount it a bit and you end up with $4. I'd call that a fairly/fully valued share. Anyone else want to try? Stuart