Whether it is a joke depends on your holding timeframe. If you are holding for 1+ year this is (I think) a buying opportunity. If you are holding for a month then you're asking for frustration. Holding short-term relies on other people projecting earnings based on (unstable) nickel prices while holding longer term there are actionable annual reports to drive SP.
The previous report said MRE had $50m profit and market cap is $900m, an 18 P/E ratio. RIO Has about a P/E of ~20. So MRE's current SP based on the report alone is fair. If you care to project earnings based on nickel prices though it is more undervalued...
If MRE makes $150m in 2010 like I project then if SP stays in line with an ~18 P/E SP would be $2.40. Maybe $1.50 to be more conservative.
I think at the moment the SP is fair value if you are waiting for guidance from reports, but if you're watching nickel prices and projecting future earnings then it is undervalued.
MRE Price at posting:
80.0¢ Sentiment: Buy Disclosure: Held
