DES 10.6% 7.6¢ desoto resources limited

i might join invest4profit i think, page-3

  1. 380 Posts.
    Subject : [shares] destra Update: destra recommended in investor newsletter

    Stakeholder, please find attached a copy of the newsletter from
    Invest4profit.com that recommended destra shares to their members.

    Thanks and have a great weekend :-)

    Domenic Carosa


    ----- Original Message -----
    From: Invest4Profit.com
    Sent: Friday, February 03, 2006 10:11 AM
    Subject: Member Mail


    Dear Members

    I have a new recommendation.

    I recommend to buy DES now.

    It last traded at 14.5 cents.
    Currently the offer is 15 cents.

    I believe fair value is near 28 cents,
    ... so I recommend to pay up to 22 cents.

    Destra is D-rated.
    In that light, invest up to 4%.
    ... i.e. 4% of your total equities capital.

    I recommend DES because:
    ... it's a 5 star bargain at current prices !!!

    In 2007, without any growth at all:
    Destra will post a net profit of about $2.2m.

    Having said that, the growth potential is huge.

    Given the market cap is just $19 million,
    ... and that accounts for the options,
    Destra's 2007 P/E is just 8.6.
    I say that based on a share price of 14.5 cents.
    ... and based on $2.2m net profit.

    If we deduct $2m for net cash, the cap is $17m.
    Based on a cap of $17m, the 2007 P/E is just 7.7.

    Due to the growth potential moving forward,
    In our view, the 07 P/E should be at least 16.
    ... i.e. compared to the current 8.6.
    Destra is a therefore a compelling opportunity.
 
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