Estimated Earnings Growth Rates
If you're doing your DD, you did notice, I hope, that I shot really low on the estimated Earnings Growth Rates at 15%. If I plug in the number 18%, which is very realistic, you can see the results of what today's fair value is for FEED at the bottom. Notice that the professionals have FEED at an estimated 34.10% Earnings Growth rate for 2010.
http://moneycentral.msn.com/investor...es&Symbol=FEED ) That's a bit unrealistic to hold that number out over 5 years but for a year or two, the professionals think it's possible. A number in the 18-25% range is very possible over 5 years. If this does play out over the next 5 years, even at the highs of lately around $7.50, FEED is very cheep indeed.
This company is just beginning to rev up the engines. I am reading the wild swings in price as the big boys are adding more and more shares cause they know this thing will be way up in a year or two
http://moneycentral.msn.com/ownership?Symbol=FEED . That's my take, but do your own DD and make your own choice cause you're the one who will have to live with the decision.
I've refocused a lot more money on this downturn on FEED and will have a whole lot more free shares riding after we pop to around $7 again.
FIGURING FAIR VALUE at 18% Est Growth rates
CURRENT EPS 0.57
Earnings Estimate next 5 Yrs 18
Number of Years takes to Double 4
Number of Doubles in 10 years 2.50
ESTIMATED EPS GROWTH RATE 1.43
ESTIMATD FUTURE P/E 36
Estimated PPS in 10 years $51.30
TODAY'S FAIR VALUE PRICE $12.83
MOS PRICE (50% of Fair Value) $6.41