WPG 0.00% 1.5¢ wpg resources ltd

short term how much more upside

  1. 1,198 Posts.
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    guys

    lets say they make 35 mill after tax

    no.shares to increase to say $125mill post raising

    EPS: 35/125= 0.28 cents

    PE 5 = $1.40

    I reckon short term like any other mining stock, the forward PE aint gonna be higher than 5 or 6!

    yes they have magnetite, but that wont be factored into share price like most other mining investments until shareholders can see certaintly that near-term its gonna be a reality. Magnetite on back-burner for now, but with a few good qtrs proddy from haemetite + when management starts talking up the magnetite and start making it a reality, the market isnt gonna give too much weighting for it.

    Hence forward PE 5 for now ala most other miners. PE will no doubt head towards 10 when the magnetite comes along.

    So $1.40 at PE 5; $1.60 at PE 6

    thats the reality of this baby short-term

    If ive missed anything plse tell me.

 
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