Laidlaw Energy Group, Inc.(fka LLEG)

[jimmenknee]

The main issue with attempting to project a value on LLEG for me Bafer184, is the over-use of the capital structure to get it going. We have doubled the O/S in ~ a year's time and I don't think it supports the "equity" very well...

The other (obvious) problem with projecting value for a start-up growth company is the lack of baseline numbers/proforma to go on. However my 2 pennies worth using a projected PS ratio assuming:

1. a 2011 fire-up with testing complete by end 2Q
2. a revenue stream similar to Renegy's Snowflake Biomass Facility (accounting for LLEG being 3x the size)
3. 20% rev growth rate and another smaller (~ 20mw) facility coming on line in 2014
4. No share restructure and YoY 10% increase until maxed at 3bill O/S

and using a high (10+) multiple still keeps us in the pennies:

 
 Grow % Year Proj Revs	    Rev/Sh  O/S	           PPS	 PSR 
 Base   2011 $10,000,000.00  0.0041  2,432,816,831  0.045 10.95 
 100%   2012 $20,000,000.00  0.0075  2,676,098,514  0.080 10.70 
 20%    2013 $24,000,000.00  0.0082  2,943,708,365  0.085 10.43 
 80%    2014 $43,200,000.00  0.0144  3,000,000,000  0.150 10.42 
 

To be a $1+ stock, the O/S should be around 100mill IMHO. This dilution is frustrating on 2 counts-- #s and lack of insight into the ROI