morgans strong buy on gcl, page-10

Pski,

Dont know if you realise, but GCL financial year now ends 30th June not 31st December as you state in your post.

They announced this change earlier this year to bring it into line with Australian accounting practises.

Not that it makes any diffence overall in their earnings, but it will impact on this years results.

The new coal prices only started in April this year so the shortly to be released June 05 result will only reflect 3 months of these higher prices.
To this extend these results will understate future earnings.


The eps for year end 30th June 2006, with a full 12 months of the new prices, should be between 80 & 90 cents.

Slowly, the analysts are waking up !

On a p/e of somewhere around 7 to 8.... they are worth ~ $6.00 to $7.00 price range

Cheers

Bendigo