IAHL Corporation (IAHL)

[q80]

next week should be interesting ...this is a great news ...(A portion of the natural gas purchased from Shona will be used to produce the plant's electricity, which will lower the production costs by about approximately $7.5M per year ) that means the profit margin will increase ..reducing the cost by 7.5m per year with a revenue of 65m per year is a huge increase in the profit side ..i will try to run the numbers to reach the fair value :
-around 71.2m (65m + 53m + 9.7M / 10 ) the annual revenue for Nataly 1 * 5 plants = 356m revenue per year for iahl
-with lowering the cost by 7.5m per year i would assume the profit margin will be around 10% if not more ..but to be conservative i will take the 10%
-the expected net profit = 10% * 356m = 35.6m
-EPS = ( net profit ) 35.6m / (float )55m = .65 cent
- the industry P/E = 22 http://biz.yahoo.com/ic/912.html
- 22 * .65 = 14.3 $ the fair value per share for IAHL in the next few years imo
i didnt take the other sources of revenue the company might grant in the future into my consideration in the above calculation , wich may increase the fair value ...i think the next few weeks will makes us the longs very happy ...glta