Houston Natural Resources Corp (HNRC)

[icbeatsthestreet]

Here is my take on the I Text dividend:

I am basing my evaluation on the unaudited information available in the last 2 quarterly reports:

WNTR listed $40,000 in I Texts receivables in Q1 and $100,000 in Q2= $140,000

WNTR owns 20 % of I Texts. Multiply the recivables × 5= $700,000 in profit.

Since Q3 is the first full Q with the Rakuten partnership, I am conservatively expecting $125,000 in receivables in Q 3 and $150,000 in Q 4. That is not unreasonable.

$125,000 × 5 = $625,000 in I Texts profit in Q 3. And $150,000 × 5 = $750,000 in Q4

Q1 & Q2 = $700,000
+
Q3 & Q4 = $1,375,000 = $2,075,000 in I Texts profit for the year.

Apply a conservative 25 P/E ( 1/2 the P/E of the avg.internet stock of 51) × $2,075,000

=

51.5 Million Market Cap.