Analysis of Valuation for PRDL based on recent activity
Here is probably the closest thing you will get to an analsyt's take on PRDL.
Market cap $300,000 +/- based on price .0001 x Shares in float
Up until recently the company had been struggling to acquire financing for their proposed acquisitions of distressed real estate. With Carl Grant stepping in as the new CEO, we have seen excellent forward movement in the company's plans. In my opinion this is a unique opportunity to take part in an industry that is a cash cow and normally only done through privately held companies.
In late June, the company entered into contract to acquire two residential and one commercial property.
Their first residential property sold last week at a gain of over 100% which means they doubled their investment. (Pretty solid for a quick flip of distressed real estate, though not unheard of).
As per the news release today, Their second residential property just went into contract at a gain of 43% which is another solid return.
Additionally, they announced they have offers on the commercial building significantly higher than what they purchased it for.
Let's for arguments sake say they earn $5,000 - $10,000 on each quick flip of a distressed real estate asset.
If they sell 300 properties (very easily done) at a profit of $5,000 each they will earn
$5,000 x 300 = $1,5000,000 or $1.5 Million
A company that earns $1.5 Million in this industry would see a P/E ratio of a least 10 which means a market cap of $15 Million based on current earnings not even future growth.
$15 Million market cap would equal a PPS of .005 (50 times what its at right now)
A forward looking market cap would be much greater if they earn more per transaction than the measly $5,000 I based my assumption on.
