EPS100Momentum's  Instablog

EPS100Momentum
Send Message
Author has a degree in Engineering and is an avid investor in the market. Experience in industrial materials and structures. In college studied atomic & nuclear physics as well as material engineering. Eastern European
My blog:
EPS100Momentum's Instablog at SeekingAlpha
  • RKT is gonna Rocket in 2011 towards $100/shr 0 comments
    Jan 25, 2011 1:38 PM | about stocks: WRK, SSCC, UFS, SWM, CUT, WOOD, IP, FBR, TIN, PKG, SPY, QQQ, TNA, SPXL, MIDU

    why?

    Rock-Tenn announced the acquisition of Smurfit-Stone (NYSE:SSCC) for a price of $35/share , this will accelerate their earnings big time.
     

    RKT is currently trading at forward PE 10 if you put a forward PE of 10 on the revised target by analyst today it comes out to:

    $8 eps x forward PE 10 = $80/shr

    Making RKT currently undervalued by roughly $17/shr compared to its previous valuation metrics.

     



    Stocks: WRK, SSCC, UFS, SWM, CUT, WOOD, IP, FBR, TIN, PKG, SPY, QQQ, TNA, SPXL, MIDU
Back To EPS100Momentum's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.