I sold my NZR shares after the recent earnings announcement for $2.60. After digesting the numbers, it looked to me to be over priced and quite a risky investment.

Even if they have a stellar year and deliver NPAT of $70M, this would be a PE multiple of about 10 which seems alright but you have to ask yourself, are these kind of earnings sustainable for the next 10 years?

Its a great story and its good to see them returning to profit but I can't quite see how current price is going to provide me with a decent dividend or gain in share price over the next 2-3 years.

From a TA point of view, there is nothing too scary in the chart and it looks like there will be more upside. I just don't understand how earnings are going to grow to justify price in the $3-4 range. What earnings do you guys forecast they will deliver this year, and then next?