Monday, April 24, 2017

AEM has delivered yet another stellar quarterly performance

We need to go into the newly released figures to understand how solid AEM’s 1Q2017 result was.

Based on the current price of $1.835,
No of shares outstanding as of 31 Mar 17 = 43,342,258
No of shares outstanding after bonus issues = 65,013,387
Treasury shares = 1,770,371
Treasury shares after bonus issue = 2,655,557
Total shares outstanding = 67,668,943.50
Market capitalization = 124,172,511.32
NAV per share = 79.7 cents
EPS in 1Q2017 before bonus issue = 9.47 cents
Forward p/e with 1Q profit annualized with bonus shares included = 7.266x
Forward p/e with the more optimistic 3Q earnings forecasted by management with bonus shares included = 6.103x

Even if we assume that there is no more growth of AEM from this point onward, and the market is willing to take its p/e as 8x, the price should actually be doubled to $3.67 from its current price of $1.835!


superphang
http://superphang@blogspot.sg

2 comments:

  1. Great find. I'm up 100% because of your idea.

    I'm wondering how you get to $3.67?

    This quarter's $4.1M net profit annualized is $16.4M. A p/e of 8x gets you to a market cap of $ 131.2M.

    Current market cap (stock price $ 2.22) is about $ 144M.

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  2. Sorry for the late reply. Very exciting but rewarding journey for this one: I edited this blogspot once and a reader from Investingnote actually pointed out my mistake that the 1Q2017 figures were before the 1-for-2 bonus issue which had its xd on 7 April 2017. So, I took the bonus shares into consideration for both the forward p/e's. I changed the p/e from 8x to 12x in my update in Investingnote but it was my slip that I did not update the p/e in my own blogpost correspondingly. I hope I have helped my readers make some decent returns from my hard work and speed in providing a rational target price right after AEM's solid 1Q2017 financials.
    Hope this explains your query.

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