GRB 8.16% 5.3¢ gage roads brewing co limited

I think the price is dropping because people have started to...

  1. 1,983 Posts.
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    I think the price is dropping because people have started to look at the fundamentals of the stock.

    Let's look an example
    * assume that after their expansion (which is going to take time) they do produce 1.2 mil cases (and sell 1.2 mil cases)
    * assume a profit of $2 a case (use your own number if you don't like this one). So $2.4 mil profit
    * 302 mil shares on issue


    Then we have
    2.4/302 = .00795 profit (earnings per share)

    0.16 / .00795 = PE of 20

    For me this is a pretty high PE for what I think is a best case senerio. I don't think WW will let them make run away profits, the market is a pretty tough and fickle one. This is my opinion and I respect those that may have a differing one or a longer term view.

    DIS: Currently don't hold was in the market previously upto 6 cents. Wish everyone all the best with this one, DYOR
 
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Currently unlisted public company.

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