It's actually not a target....Trapeze put a VALUATION of $2.50 on Dynacor.

Trapeze Asset Management updates its outlook for Dynacor on page 9 of the report:

“Dynacor is not only an outcast, but was actually recently a cast-off. We added to our position for most clients in June, buying the remainder of a sizeable position in a fire-sale from a hedge fund that went out of business last quarter, with a stink bid of $.37. The company just reported earnings of $.07 this quarter alone and the share price jumped to $1.20. Dynacor mills gold for gold miners in Peru. It has a stable business with margins that don’t fluctuate dramatically, even with the price of gold. The company has the highest retention rate of millers in its region, and when the Peruvian government tightened its regulations, Dynacor was able to win business from other non-compliant competition. While the most recent quarter had higher than normal grades, from excellent throughput and the ability to accept higher quality business moving away from competition, we still expect at least $.05 per quarter of earnings. And, by the middle of next year, we expect the company to have built a second larger mill which should expand earnings power to well over $0.25 per share annually. While the stock price has risen dramatically since June, it is still too low.


There is unpopular and there is unknown. Dynacor has been off the radar screen. No analysts cover the company. It operates far afield, in Peru. Its earnings, previously insignificant, have now visibly ramped up to a sustainable meaningful level from production growth. September was a record month of production of 5,757 ounces (over 50% more than last year’s Q3 run rate). The market has taken notice and we expect more to follow.


The company also has its own potential gold exploration property where it expects to begin drilling shortly, which could also add substantial value. Based on milling alone though, the company should have a value closer to $2.50 per share, double today’s share price.”