GTP 0.00% 12.0¢ great southern limited

rough figures

  1. 16,067 Posts.
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    800 million shares will be issued if this proposal sees the light of day.

    Austock believes the share price will reach 73 cents in 12 months if the proposal goes ahead.

    Currently 28 cents.

    “Great Southern will have sustainable cash flows from harvesting of plantations and upside from new MIS sales,” Austock said.

    “We forecast free cash flow averaging $44 million per annum during the next five years and gearing of about 60 per cent.”

    The rough figures......

    Current shares 369 million
    MC at 28c = $103 mill

    If proposal taks place

    Shares will be 1.169 Bln
    MC at 28c = $327 million.

    So based on the independent advice of Austock $44 mill will be generated p.a for the next 5 years.

    So even at 28c with 1.169Bln shares the PE would be 7.43

    That is way over the top for the industry and the sharemarket

    But they then go on to say 73c target price in 12 months.

    73c at 1.169Bln shares = Mcap of $853

    That would be a PE of 19........pmsl.

    Are these guys for real??

    I'll use their $44 mill for a sec.

    And I think a PE of 4 is more appropriate.

    Market cap should then be closer to $180 mill

    About 15c per share.

    And they are ofering shares at 50c each that you pay tax due to the CGT event ruling and get shares in a stock that will be diluted to buggery while selling your assets at half the price?

    lol......the more I look the more I laugh.

    Why not just capital raise and pay us all out?

    Same difference.....except that would be the fair thing to do........wouldnt want to do that.


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