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Re: otclife post# 10413

Tuesday, 08/22/2017 12:09:44 AM

Tuesday, August 22, 2017 12:09:44 AM

Post# of 45833
Chicagojosh, I'm a retired CPA. The valuation on $SIGO is not difficult to compute. You decide the appropriate Price-to-Sales (P/S) multiple. (The "T" stock trades at a 4.6x multiple of forward revenues)

Current operations
$7.3 mil revenue ($140k/wk * 52 weeks) * P/S ratio = Market cap/4 mil shs
@ 1 P/S ratio = Stock price = $1.83
@ 2 P/S ratio = Stock price = $3.65
@ 3 P/S ratio = Stock price = $5.48
@ 4 P/S ratio = Stock price = $7.30
@ 5 P/S ratio = Stock price = $9.13


Future operations - low end of range
$30 mil revenue (150k sf * $200/sf) * P/S ratio = Market cap/4 mil shs
@ 1 P/S ratio = Stock price = $7.50
@ 2 P/S ratio = Stock price = $15.00
@ 3 P/S ratio = Stock price = $22.50
@ 4 P/S ratio = Stock price = $30.00
@ 5 P/S ratio = Stock price = $37.50

Future operations - high end of range
$46 mil revenue (230k sf * $200/sf) * P/S ratio = Market cap/4 mil shs
@ 1 P/S ratio = Stock price = $11.50
@ 2 P/S ratio = Stock price = $23.00
@ 3 P/S ratio = Stock price = $34.50
@ 4 P/S ratio = Stock price = $46.00
@ 5 P/S ratio = Stock price = $57.50

PLUS:
$123k total debt is due 12/31/18
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=133999505

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