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snow

09/25/09 10:27 AM

#351 RE: StevenRisk #350

Steven

My biggest stake is in CNOA which is a lot cheaper than this company if the wild card of the cigarettes is not factored into the picture. This company is less risky though as an investment. I think it is an important point that the new revenue streams will probably have a considerably profit margin than the old ones. Thus profits may gro 30 - 50 % per year even if the cigarettes are not taken into consideration. Objectively a p/e ratio of at least 20 would seem fair if uplisting takes place in view of the prospective growth rate and the level of risk. Assuming earnings per share of 50 cents next year a stock price of 10 dollars by the end of next year seems to be justified from an objective point of view.