Jeez the claws are out tonight. Some people must be losing money. I often think the amount of noise on a stock thread is proportional to the positive or negative deviation from the opening share price. There must a PhD in that for someone.
-->lbwhite
I note your post [edit 24372]. I did not possess enough info to give you the opinion you sought on how under/over bought PRM is. When hunting as a lone wolf amongst a pack of hyenas it is best not to leave exposed flanks from poorly researched opinions. FSE leaves too many hostages to fortune in his posts and is savaged for it, thus allowing the positive nuggets to be diluted or overlooked. FSE should keep it simple and not be distracted by the incoming chaff.
Now lets see..... that question of yours. The balance sheet net assets were £5.7M after stripping out that yucky goodwill. So the stock is trading at 43 times June 2003 net assets. Gulp. Better try another metric then. How about sales? I see those were £171k so the stock is trading at an eye popping 1470 times sales. Whoops, I think something just vacated my eye socket. Look to future I hear you shout. Ah, yes, use the tried and tested broker DCF NPV yaya method for blue sky stocks. Take a huge number plucked from the air, discount it back using a much smaller number for ten years, then multiply the guaranteed earnings by the biggest number you can get away with. Hey presto £250M is about right and agrees with what the market has already priced the stock at. Only kiddin'
A method I use to try and determine what a company sees at its near term value drivers is to look at the pecking order in which they are described in annual/interim report and then count the number of sentences used to describe each. On that rough basis I think it disingenuous to suggest the IDEXX live BSE test is not a significant near term value driver for PRM.
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