CEO of NKL on CNBC..How to save the Venture Exchange & watch GRE .V
posted on
Jul 09, 2013 07:02PM
We may not make much money, but we sure have a lot of fun!
PROPHECY PLATINUM ..(NKL) CEO on CNBC
http://video.cnbc.com/gallery/?video=3000181401
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I doubt the name change is the end of the image transformation this company in undergoing. The initiation of the dividend, the influx of Canadian directors and now the name change is probably just the beginning IMO. There is still lots of work to do on this front and mgmt is aware of this I'm sure. Ultimately though, it's the company's results that is going to win investor confidence and they've been delivering them in spades.
We've seen a good run in the stock but I think that anyone who's selling here is still giving away their shares. All we've done is gone from asinine, insane undervaluation at the start of the year to ridiculous undervaluation now. We have a growth company with a squeeky clean balance sheet trading at 3.5 times trailing earnings and below book value. You can make the case that there's political risk in China but that doesn't justify the type of crazy discount the stock still trades at. A popular way to value a growth company is to use the PEG ratio. A ratio of 1 is considered fair value. Assuming just a 15% growth rate in earnings, the fair value of GRE using trailing fully diluted EPS of $0.33 would be $4.95. Knock off a healthy 35% if you want to account for "political risk" and you get about $3.20.