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Message: Settlement

Settlement

posted on Oct 22, 2009 05:51PM

Currently Edig sells at 9 times its earnings $.02. Assuming that the settlement is about $3,000,000 net for Edig then this will add $.0106 to the $.02 that currently has earned. If we use the same multiplier (9) then the market should adjust the price to around $.28. I think though that this settlement of $3,000,000 is way too small for Edig and DM. I expect a settlement in the neighborhood of $10,000,000 with a net for Edig between $5 and $6 millions. In this case the price should adjust accordingly. You make the multiplication.

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