Stockval have put a value of $2.87 on Forge, and are suggesting that at current price reflects a return of 17.1% pa. They have assumed normalised ROE is 25%, under their calculations (I don't know exactly how they manipulate it) they have achieved 45% normalised ROE for last 2 years. So it looks conservative.
The Clough price is obviously cheap, it is strange to see sophisticated investors sell at this price. I wonder what went on behind the scenes to convince them? They must have been sold a pretty good story on their remaining stake in Forge to convince them to sell......or they had agreed many months ago, before Forge was trading at current prices.
FGE Price at posting:
$2.38 Sentiment: LT Buy Disclosure: Held