"Lets see here, guidance of 14c this year, and 20c next year. Catalysts are China Lot (could probably double net income alone), Korea, FM Moscoe..hitting the income statement starting Q1 2010..Now you take a simple 20x mulitple to EPS and you come up with a price target of 3-4 bucks. This isn't rocket science.
If EGMI is your largest holding and you still don't understand what you own, you need to sell. I recommend T-Bills, the yeilds are off the charts lately. "
Wow, Ian you really have a chip on your shoulder don't you? I do in fact understand the math behind how one comes up with a projected price, but behind those numbers has to be some kind of confirmation and substance. As of right now, there is none. Do we have a lot of potential on the horizon? Sure, but so do a lot of companies that make promises that just fizzle out. The reality is this is a BB stock that, like I said before, hinges on a few good contracts, and how the market likes their product, which may become a reality or may not.
Therefore, people that have a stake in this company now are gambling that those contracts come through, but many (most?) investors can't take that risk, they're going to buy when management proves that they can grow the company. So, they're willing to pay a higher price in exchange for risk, thus a stagnant price. See, it's not rocket science.