A new start for Marconi 11

The above post is a another attempt to talk the price down. No doubt about it.

And anyway I don't think his figures add up.

Using his technique you get

Core sales Profit Net value (20*profit)
3bn 0 0
3.5 200m 4bn (which is where we are now 1.3bn
4.0 400 8bn equity+2.75bn debt)


Core sales 3.5bn

Break up value:
Core sales of sexy bits 800m*3 = 2.4bn (Optical networks & Deep fibre reltec)
Rest 1*sales (3.5-0.8) = 2.7bn

Total net value 5.1bn

less debt 2.75bn

net worth 2.35bn (2.35/2.8 = 84p a share).

So thats double the existing price of circa 40p

Anyway i don't belive the debt figure. I think that down to 1.2bn as per previous post.

Ian.

PS the figure above is in agrreement with previous post of telegraph indicating a value of 75p a share.