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Post# of 17004
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stervc

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stervc

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Re: mrgoodtrade post# 335

Wednesday, 11/07/2007 8:31:38 AM

Wednesday, November 07, 2007 8:31:38 AM

Post# of 17004
Mrgoodtrade & ALL, with that DMGS News...

That $2,208,343.06 will be logged as Cash within the Balance Sheet of DMGS. That will enhance the DMGS Equity that much more to enhance the DMGS Book Value (BV). The bottom line BV would increase immediately as derived from below:

Assets - Liabilities = Equity
Equity ÷ Outstanding Shares (OS) = Book Value (BV)

$2,208,343.06 ÷ 11,817,328 (OS) = Book Value (BV)
0.186 = Book Value (BV)

That’s an increase of .186 per share to the immediate bottom line of the Equity/BV of DMGS. Here's the hidden beauty of that PR for what that immediate bottom line means that people might not be seeing.

Within the post below, I created a valuation through logical deduction taking under consideration DMGS reducing their Total Liabilities by paying off the debt of $4,194,957 derived from a mortgage liability from the $8.7 million Revenues earned from the closing of the deal with Coastline.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24076762

That reduces the Total Liability to be $4,194,957 - $2,208,343.06 = $1,986,613.94

The $1,986,613.94 is the new figure that needs to be reduced from the $8.7 million. Now consider the valuation given the Cash of $2,208,343.06 to be reflect on our Balance Sheet. Let's consider a worse case scenario OS from what is indicated still on the pinksheets.com website:

That means that the breakdown of where the $8.7 million is probably somewhere in the area indicated below:

$1,181,732.80 (To pay out .10 Cash Dividend on OS)
$1,986,613.94 (Mortgage Payment**Liability)
$240,000 (Average Expenses Paid Annually)
$5,291,653.26 (Amount remaining to be applied to the Income Statement as Revenues)
*********************
$8,700,000 (Total from the Coastline Deal)

Now, that’s $5,291,653.26 to be applied as Income within the Income statement as these are moneys “earned” from their product, business, or service provided; ie real estate. This will give DMGS with its OS of 11,817,328 shares, a Fundamental Valuation of what’s indicated below:

$5,291,653.26 ÷ 11,817,328 (OS) = .447 Earnings Per Share (EPS)

With using a 12 PE Ratio as the multiple for a conservative growth rate, then consider…

12 PE Ratio x .447 = $5.35 per share

Hopefully this helps with a better understanding of the magnitude of that news yesterday.

v/r
Sterling


Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29867262

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