..and to expand - say the presentation suggests the deals we have in place will earn us 10 mln over the next 12 months - I don’t that too far fetched At a p/e 20-25, which is not unreasonably large for this type of company, that gives us an SP of about a quid
Jmfw - because the company has good long-term prospects. I would say its better than 50-50 the CV is good enough and comes out in a timely fashion- hopefully in tje next day or two. That would provide a positive rerate.
The companies improving prospects elsewhere place a floor on how far the SP will drop and provide a good chance of retrieving losses and more in the medium term - say 12-18 months.