The JSE:CVN share is at a Price to Earning (P/E) of 12.5 a share price at 24c. The previous reported earning where around 1.98c per share. The report is that the headline earning per share will increase by 125-135%, leaving the HEPS around 4.455 - 4.65cps. The IT P/E multipliers are in the vicinity of 10 A¢A_A" 13, with CVN operating in that range. Therefore the projected range of the share after final result in November for the August 2011 reporting will be 44,55cps A¢A_A" 55.8cps . Potential expansion in the share is 185% - 232 % on a base line of 24cps. Any thoughts?
at a glance, I see nothing positive about this company. Poor margins, negative cash flow ... Nothing really to convince me that the business model has changed. But then, I have not looked into this in any real detail.