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.
DES Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held