CW Mackie (CWM) which is jointly controlled by Lankem (LCEY) and Kotagala Plantation company (KOTA) expected to have made a profit of approximately Rs 250mn for the year ended 31st December 2010 . Accordingly company's Earnings Per Share (EPS) would be in the range of Rs 6/= per shares.
If Share price is to reach Rs 125/= it means the Price Earnings Ratio (PER) would be in the vicinity of 21 times which will make CW Mackie to be considered to overvalued.
As per the shareholdings 3 major shareholders of the company namely Lankem, Kotagala and Dr Senthilveil control approximately 87% of the company leaving only about 5mn shares in the market.
Illiquidity of shares have frequently resulted in exorbitant share price movement in many companies, hence time only will tell us whether CW Mackie share would reach Rs 125/= or not!!!