Quote:
Originally Posted by Babs_O
Thank you for the document.
I have a natural tendency to support ventures like this. But may hold break small as it looks overpriced for the following reasons.
My calculated P/B for Mid 2008 based on PP price is 4.6
Also noticed they have already raised some money in 2008 and this seem not to be showing too much in the shareholders funds except this true PP (i.e. earlier raised money) was done at about N 1.00 per share.
End 2007 PE (including total shares by mid 2008 at time of this placement) indicate a PE of 31.8 And by end 2008/2009 they project PE of 22.3/17.8
The PP will be more attractive at a price of N 1.8 or below.
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It quite appalling the way these banks and issuing houses talk these coys into going for PPs
Well all they are after is their fees which would swell their profits... At the proposed price i think they must be joking.. how did they even arrive at that price, i would like to take any of their valuation experts on on this one!!
As for me the rea of PPs is over.. i rather look for some undervalued stock in the secondary mkt!
