I NEVER buy shares in a downtrend but where might this downtrend theoretically end ?
If they can make the lower end of their guidance $33m after tax, (I don't think this is "a given" taking into account the "creative" way this company was floated), on 409.3m shares that gives 8.07 cents per share EPS.
Now what PE to use ?
We need to consider that transport and feed costs have been at or very close to cyclical lows.
We need to keep the PE low because this company has a VERY long way to go to build credibility with the investment community and has next to no runs on the board so its almost anyone's guess how this company will perform over the medium term.
I don't see any compelling reason taking into account what amounts to a forecasting fiasco to date and the above to ascribe a PE of more than 10 so maybe this stock bottoms out somewhere around 80 cents per share ? Time will tell...