Element Global Inc (ELGL)

[ThaiLove]

Putting things in perspective, here are a few things to consider;

Back in Nov 2013 there were 408,801,248 shares outstanding, for the year 2013 they reported total sales amounting to %7,819,226 gross, with $1,943,783 net. When Q3 results were released on Nov 18th, the share was trading at 30c/share, which gave the company a market cap of 122,640,374, with an earnings/share of 0.0047548362670361 gave the company a high P/E of 63. With the takeover bid of 80c/share, the desired acquirer valued the company at 327,040,998, giving GBHD a massive P/E of 168! It was definitely a good offer.

Since retiring 151 million shares, based on 2013 numbers would give the company earnings/share of 0.0075398510095653, at 80c/share, that would result to a P/E of 106. at the current PPS of .40, gives the company a P/E of 53.

But hold on... That was based on 2013 earnings... Before the launch of Wellness Juice (our flagship product). With expected sales through the 1st 2 quarters expected to top $25 million & Net profit expected to exceed $7.5 million, that changes EVERYTHING!!! If the company made NO sales for the remainder of the year, that would mean earnings of 0.0290921787934867/share, at the current PPS of 40c that would give GBHD a P/E of 13!!! ARE YOU KIDDING ME!!!

If the company is able to maintain its sales numbers through the remainder of the year (without ANY growth), Net profit is set to top $29 million... Under the current share structure, that would give them an earnings of 0.1124897580014818/share & at the current price of 40c would give them a P/E of a STAGGERING 3.5!!!

if we take a reasonable P/E of 20, the share price would be sitting at 2.25

I'm no genius, but I recognize a good deal when I see one. With a number of catalysts ahead of us, I plan to stay around these parts for quite some time. I'm confident in the management & direction of the company. Some newer investors may think they're late to the party with the recent appreciation of the PPS, but I say, the party has yet to begin!!!

Just my 2 cents,

Thai

P.S. Feel free to sticky this along with my analysis of the company http://seekingalpha.com/instablog/7510531-marketman123/3030875-go-big-hold-for-dollars-gbhd