FML

In the March quarter, its gold output has increased. Yes, this is a PRODUCER. The market cap is AUD212 million. At over 47,000 ounce, it would generate a profit of at least AUD40 million. If you extrapolate that to a year with steady production, it would give at least AUD160 million.

Can you imagine how stupid the market is to value this stock at below a PE of 2, with more gold to come? I used (market cap)/(annual profit) to calculate the PE ratio. The Chinese would be highly interested! Both to own a cheap gold stock and to acquire its know-how and staff.

http://en.wikipedia.org/wiki/P/E_ratio

I used to use this method of calculating for LSA and kept topping my holdings. I will do the same for FML if the share price continues to languish. Read what I wrote in capital letters? LSA is also a PRODUCER. PRODUCER.