GTP 0.00% 12.0¢ great southern limited

+ a rough guided forecast +

  1. 22,691 Posts.
    On the back of an envelope:

    2003, Sales $109 mill, Profit $41.4 mill. (38%)

    2004, Sales $240 mill (+120%), Profit?

    Rough estimate: Apply the 38% margin to the $240 mill sales and deduct some extra interest from conv notes, resulting NPAT: 87.9 mill. Shares: 243 mill. E/S: 36.1 cents or on current price of $3.00, P/E=8.3

    Notes: The 38% is a high net margin but sometimes the margin rises with increased sales. I am picking a profit of $88-$94 mill.

    GTP is well set up for the future after buying 55,000 ha of land from Challenger in March 2004.

    Thanks Alpha for mentioning GPT.

    Readers, please do your own research and you decide if and when to buy, hold or sell any stocks.

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