Hey chaps. listen. Im no chartist here... I am a CA though, if that adds any worth to my name. R4.25 was derived as follows: Pre-listing info gives actual EPS of 54.5c at 31/03/07. Since, CBH is a new listing,you look at its competitors Rainbow and Astral. Use Astral since Rainbow price was 'distorted' due to the offer to buy out. In APril, AStral price of R117.53 was on EPS of R12.86 which gave a PE of 9,1. At that time, the alsi was at a PE of 15.6 thus 9.1/15.6 = 58% discount. Now, 58% is not accurate as we are using a snap shot so i took an average for the year which came to 45%. This 45% means that the PE of Astral has been 45% of the PE of the alsi. In my previous note, I used a 50% discount because CBH is new on the JSE and I was being cautious. 50% vs 45% not a major trainsmash.. So, in following, I took the ALSI PE in April of 15.6 and applied the 50% discount to give me an expected PE of 7.8 (15.6 * 50%). Using this 7.8 and knowing that the march 07 EPS was 54.5c, I calculated a price at March/April of (54.5c x 7.8 =425c). Hope this explains.