Course objective

[Arnaud]

Hi,

How do you determine the value of a stock below which you can buy it?

[Jerome]

Hi Arnaud

My criteria are yield, dividend history and growth, payout ratio, volatility and currency risk
I don't have a price target (this is secondary to me), but a target of return on purchase cost
in fact I am not trying to maximize my gains through successive purchases/sales, but to maximize the income that I obtain from a given capital

[swx]

Good morning

New York, May 22, 2013 – Constellium NV (NYSE: CSTM) (“Constellium” or the “Company”) announced today the pricing of its initial public offering of 22,222,222 Class A Ordinary Shares at a price of $ 15.00 per share. The Class A Ordinary Shares are expected to begin trading on May 23, 2013 on the New York Stock Exchange under the symbol “CSTM” and on or about May 27, 2013 on NYSE Euronext Paris under the symbol “CSTM”. The offering is expected to close on or about May 29, 2013, subject to customary closing conditions.

Constellium is offering 13,333,333 Class A Ordinary Shares and the selling shareholders are offering a total of 8,888,889 Class A Ordinary Shares (of which 5,037,037 shares are being sold by affiliates of Apollo Global Management, LLC (NYSE:APO) and 3,851,852 shares are being sold by affiliates of Rio Tinto Plc).

While its value had initially been estimated at 17 Euro, the issue of CONSTELLIUM: CSTM, at 15 USs, proved to be very laborious and on May 23 reached a low of US 13.26.

Can we estimate what its intrinsic value should be?

[Jerome]

very difficult for an IPO!

That's why you should avoid them!

[Author]

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