re: profits??...for idggmtt
Forecast earnings for 05F are $76m according to ABN, who currently have a price target of $2.56 (recently increased following the announced hard coking coal contracts for 2005). This does not include the potential for an underground development at Duralie, which has an estimated value of c.50cps.
However, this only tells half the story. The forward PE for this stock is around 2.1x with the sector trading on 8-10x. I can't see the stock trading at this PE in 12 months time, and the earnings are only going up - there is significant upside potential for the share price.
There are some excellent institutions on the register, particularly given the market cap.
Do your own research etc etc, but it is certainly worth a look. Can be volatile (last week it fell to $1.77 - though on low volumes), but this only acts as an opportunity to top up in my view!! As soon as it drops it hits a wall of institutional buying.
I hold.
GCL Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
