GTP 0.00% 12.0¢ great southern limited

gtp - could it be a takeover target?

  1. 226 Posts.
    I would like to offer my thoughts only regarding GTP and its potential.

    Firstly I am a long term holder and am pleased with the price rise. EPS of 20 cents would imply a fair value of in excess of $2.00, this being a PE of only 10

    Next year EPS could be 25 cents in which case $2.50 to $3.00 could be fair value.

    Yearly dividends should be approaching 10 cents per share so at $2 the yield is still 5% FF.

    So I still believe that GTP is fundamentally underpriced even at $1.65.

    However, could another reason for the rise be the potential for GUNNS to have a crack at it?

    Following the Normandy principle, the larger predators would prefer to target the next biggest players, as opposed to smaller acquisitions, in most cases.

    After GUNNS, GTP is the next larger player.

    I reckon it's not that far fetched.

    My thoughts only.

    Comments welcome.

    I hold GTP
 
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