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the cork

12/31/10 12:07 PM

#45268 RE: STOCK GOON #45267

Don't forget diamond production. That enters into it too.
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SABAN

12/31/10 12:34 PM

#45269 RE: STOCK GOON #45267

This stock went to .009 last year on speculation. If production numbers are good we could easily be at that and or go over 1 cent
with just people pouring into it with gold where it is and where it will be. People investing at this time in space have to come to terms with paper currency going out. Dollar,Euro they are all going down. Gold,silver,diamonds other precious metals are the only thing you have left. Gold and silver have been money for 6,000 years, all paper comes to a end at some point and we are close to there.
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small time investor

12/31/10 12:55 PM

#45271 RE: STOCK GOON #45267

Based on the figures cited in the Oct 26th FR John expects 108K grams of AU and 27K carats of diamonds to be produced. I agree with the posters here that his estimate is a conservative one. Consequently, I am utterly confident we will at least reach penny-land this mining season IMHO.
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grawsha

12/31/10 4:57 PM

#45280 RE: STOCK GOON #45267

Believe me, SOTCK GOON, you will look A LOT smarter if you did simple research before posting.
In the investment world there are two very basic terms used to give the fair price of a stock. These are Earnings Per Share (EPS), and Price per Earnings (P/E). The first one is obtained by dividing the net profit by number of shares. The second one is obtained by dividing EPS by the PPS, with lower numbers the better.

In the case of SGCP, all what it needs to reach PPS of .01 is to make a net profit of $4 million, assuming O/S is 1.8billion shares. That gives about .002/share EPS. Then, at low P/E of 5 multiples, a very low number, .01/share is the fair PPS.
Per the estimate provided by John, company will be making net profit of about $10 million, or about EPS of .006/share. That puts it at .03/share PPS. But, with gold and diamonds prices going higher in the next 6 months and production expected higher than John's conservative estimate, a net profit of $12 million is what I expect. So, a PPS of .05 pps is what I'm thinking about in the next 6 months.
Of course, not counting the speculative part of it, which could easily send it to .07 or .08.