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stayfocused

11/24/07 9:58 AM

#7510 RE: lupientr #7509

Lupientr: I have no idea what the price will be except to say that there is the potential for 5m cases of AG to be exported to China per annum. What we need to know is what is the price per case that AG is selling them for and then we can get some idea what our potential income will be. $500m is the figure being banded about, probably over 5 years or longer. To gain $100m per year in revenue each case would have to be sold at $20 each, which in my opinion isn't going to happen. So either the projection is wrong or AG needs another facility to add to the supply. If AG has $5m net earnings for 07/08 with a speculative O/S of 250m then the EPS will be 2 CENTS, then give it any multiple you want and you can see this is massively undervalued and we're in on the ground floor. JMO and GLTY

EPS is NET earnings divided by the O/S.