I do not think Solomon called for any share price by any time. I do recall him saying that historically the company has been afforded a p/e of 8, and that this would meet the price requirement for an uplisting, targeted for some time in 2012.
The company has mentioned many times that the new LUR being acquired this year is acceptable collateral for low interest loans. Hopefully, in the future, the company will take advantage of these loans rather than any further stock for debt extinguishment or anything else, and perhaps to finance some further capital development.
I am fairly focused on the fundamentals. If this company does what it says it will, those of us who remain will be happy. The extinguishment of debt may have resulted in some selling overhead.
However, I tend to ascribe fundamental reasons for the share price. Probably, this is true in the long term; maybe not, in the short term. For now, I don't think the markets believe Chinese companies, let alone one projecting 15x to 20x two year revenue growth for continuing businesses. I don't think we'll see a reasonable multiple until the second half 2011 projections are met, or credible progress is demonstrated. I think that the last press release on the fish business progress allowed extrapolations that were short of expectations.
However,as Lucky has said, the fish businesses are on track. As JF expects, and reinforced by other press releases, the other businesses may be ahead of targets. Further evidence this may be the case was revealed by Vikings examination of the Sweden presentation spreadsheet, in which the targets appear 20% below a best case scenario.
So, my guess is that the drop from the $1.00 - $1.10 range is due to low Q2 expectations. The fact is, we know that Q2 will be well below 1/4 of 2011 revenue targets, yet well above Q1. As long as the numbers are decent, indicating further establishment of the businesses, and the commentary reiterates 2011 full year targets (+perhaps Q3?), I expect us to go back to that $1.00 + level -- or higher, especially if they announce more than two fish farms being worked on, and/or that they are well along toward two cattle/sheep demonstration farms, and showing promise for franchising.
Further later catalysts will be Form-10 approval, dividend announcement, announcements of new fish farm contracts, Q3 and Q4 results showing 50%+ sequential revenue growth each, with new 2012 revenue and income targets, then Q1 2012 results showing YoY revenue growth of 600%+.
