In the book 'Insider Buy Superstocks', he seems to be calculating price targets like this:
[last quarter EPS] x 4 x PE = price target
Does that look correct?
Is he basing PE off the current stock price?
On page 105, he uses the example of an $11 stock with an EPS of $0.35 and PE multiple of 20. The price target looks like this:
$0.35 x 4 quarters = $1.40 x 20PE = $28.
Where does the 20PE come from? Shouldn't PE be $11/.35 = $31.43.
CVRR's last earnings were $2.3. It's current price is $24.25. That would give it a target of 2.3 x 4 x (24.25/2.3) = 9.2 x 10.54 = $96.97, which is highly unlikely anytime soon.