What's the right price ?3 Dec 2013 10:07
Interesting position. At the current share price the company is valued at a fraction over it's net book value I think, and that seems harsh in relation to the work that's gone on to turn the business round. However, probably understandable at this stage.
What is fair going forward ? 2x NBV (implies a share price of c.10p) ? 50% premium (implies 7 to 8p) ?
In terms of dividend, 0.28p total for the year gives a yield around 5.4%, on the high side. A share price of 7p would bring the yield down to 4% which sounds more in line with the market ?
Is 7p a sensible share price target ?