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09/29/21 3:03 AM

#4845 RE: RealDutch #4830

RD I disagree very strongly with your relative valuation of these two companies. This applies to growth. ITUP hss beeen growing enourmously during the past three years. Even if the small part of HERB we have numbers for has grown nicely during the last year the part that really matters (the plantations) cannot be assumed to have grown at all. Hence I think a very low number for growth is warranted. You have left out earnings per share in your ciriteria. I think that is very important.

A p/e ratio of 20 and earnings per share of 20 dollars results in a stock price of 400 dollars for ITUP even based on diluted numbers. That implies a comparable pps for 20 dollars for HERB to be equally cheap based on the relation value to the recent stock price.

But it has not sunken in with me that my 8,000 shares before very long may be worth 3 million dollars. Without audited numbers I find it hard to believe those numbers.