LPIH target price
Not sure where Zester's numbers come from. Nevertheless, his number is at least as valid as the $1.30 pps quoted by one of the nay-sayer here.
For a forward earning of $0.6 to $0.8 per share, multiplied by a reasonable PE ratio of 15x, you will get about $9 to $12 in one year. Considering the high demand for energy in China, it is conceivable that Longwei may build another facility after Guojiao. When that happens, PPS $17.26 is not out of reach.
Even if you think $9/$17 as kind of high, my own target price for LPIH is about $6 in one year. That is a forward PE of 10.
LPIH's current price of $2.09 is unreasonably low. I have been buying into this dip and will accumulate more when it dips further.
Some board members are concerned with the finance deal sealed a few months ago. Well, that has been priced into the share price already. The PPS dropped from $2.5 last time to $1.6 following the announcement two months ago. A stellar earning report from middle November brought it back over $2.