Caledonia Mining Corporation (TSE:CAL)

[NYBob]

CALVF TTM PE = 6.15 - very oversold and undervalued -

That PE of 7 is probably based on the 12 month trailing data
from Q2 2010 to Q1 2011.

CALVF made $.0096 per share in the last six months, and $0.0035
in the prior 6 months time period, so total earnings
for the last 12 months equaled $0.013.

Dividing the current stock price of $0.08/$0.013, I get a PE
of 6.15 based on the trailing twelve month (TTM) period.
CALVF should earn about 1.5 cents per quarter in the next
two quarters, so dropping off the $0.0035 and adding $0.03
to the $0.0096 earnings from the last six months,
annual earnings for CALVF in 2011 should be $0.039,
and that means that at the current 8 cent stock price
the PE would drop to 2.05 by the end of the year.

Minera Andes closed on Friday at $2.00 per share,
and trailing 12 month earnings totaled $0.16 per share,
so MNEAF is trading at a PE of 12.5.

Richmont Mines (RIC) had trailing 12 month earnings
of $0.70, and closed on Friday at $10.48 per share.
That stock is trading at a PE of 14.97.

Based on where Richmont and Minera are currently trading,
CALVF should be trading between 48 and 60 cents per share
by the end of the year.
by ganndolph on another CALVF forum