Forum Archive Index - April 2000

[Derek Watt <dkw@paradise.net.nz>]

I have done some simple maths on FRO (RMG) outlined below.

RMG will have 475 million shares on issue
on a forecast operating revenue (June next year)
of 72m NZD.

BCH has about 80m shares on an operating revenue
of $27m share price $10.40

If the revenue prediction for RMG is correct then
if all else is equal (which of course it is not
given development costs etc) then by some simple 
arithmetic the price of RMG shares would be $4.67 
in a years time.

Given a more normal p/e of 10 for BCH the shareprice
of BCH would be $2.34. Therefore all else being equal
and if the revenue prediction for RMG is correct 
then the share price can be estimated to be $1.05
in a years time.

RML has been purchased with 300m FRO shares at $0.20 each
+ $20m cash. Therefore FRO shares have a tradable value 
of $0.20 apparently.

strange eh? -I think I'm missing something there.

Does anyone else have any idea what a reasonable value
for FRO is right now?

Comments appreciated.

Derek.


-----------------------------------
Derek Watt 
http://www.blackrobin.com
-----------------------------------




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