PAO Group Inc (PAOG)

[serfdom]

Posted by: serfdom
In reply to: None Date:1/4/2006 9:56:58 PM

So check this math...

IF CCDE opened 10 new franchises per year, each paying $25K upfront, that's $250,000 in revs. If each location grosses $300K/year (number pulled from my *ss), that would mean ongoing royalties of $240K/year. So figure $500,000 per year in EBITDA.

It's just not enough money to justify the current PPS. Pink Sheets claims a current market cap of $16.6 million. So right now this puppy is trading at 33.2 times it's yearly revenue BEFORE TAXES and not including DEBT and OPERATIONAL EXPENSES.

I understand I used made-up figures for store counts and royalties, but I think you'll agree I was being very generous. 10 new franchises per year is almost one per month.