Southern Home Medical Inc (SHOM)

[malt66]

From the most recent consolidated P&L, $104,024 of Gross receipts.
Cost of goods sold - $14,875...related to medical equipment and supplies. Me thinks that this would be for Apena RX. Given a possible two thirds markup on equipment, Apena revenues would be in the range of $44,571 for the quarter. The balance, I would expect would be franchise fees from Encore medical franchising...in the area of $59,000.

Imagine if instead of earning a franchise fee of 59grand for the quarter, they keep and report the full amount!

In addition, they reported another $132,078 in accounts receivables!

I may be off with my calculations here...but with the acquisition of the franchises, we could realistically be looking at $1mil plus in revenue here just as it is right now.

In valuation terms, just at 10x revenue, fair value can be justified at around 4.08 cents per share.