Growth:
Earnings Growth is the Ultimate Proof of Competence. Whether managing a business or investing in one, it is critical to also focus on earnings-per-share (EPS) Growth. This one measure tells almost the whole story of a business. EPS growth starts with sales growth, which we call “proof of concept,” that is proof that the market wants your product.
A successful management team also controls costs to earn a strong net profit margin and generate EPS growth. Consistent EPS growth I call “proof of competence”. This is proof that management can go beyond product development and sales. Finally, investors should prefer companies that do not dilute this growth through issuing new shares.
And I would ask why management would want to give up their 62%+ holding of shares to make shareholders happy?
Things to Remember
Generally a high P/E ratio means that investors are anticipating higher growth in the future.
The average market P/E ratio is 20-25 times earnings.
If the average P/E ratio is 20-25 times earnings, why should I be satisfied with that? This is a growth company and not a average market company........
The P/E ratio can use estimated earnings to get the forward looking P/E ratio. :) :) :)
Companies that are losing money do not have a P/E ratio.
Earnings per share will be more than expected if new clubs keep being added and the cost of producing revenue will be lowered considerably.
The value of SCRH should be on the high side due to it's business plan of Licensee's paying/sending a fixed amount or a percentage of sales to Scores Holding..................Higher Growth is of course being anticipated.
SCRH is generating a lot of interest in the market now and while SCORES HOLDING is being placed into the WATCH lists of more and more investors, I would venture to say that most investors will not be able to actually start buying shares at a good price before the SP takes off. Too Little Too Late...........
Opinions are like rear ends, everyone has one, and my opinion is that an investor in SCRH could buy all the way up to .30+ and sell all the way up to over $10.00 a share. Investor sentiment is the driver here.[/b]
Earnings Growth is the Ultimate Proof of Competence
Proof of concept,” is proof that the market wants your product. SCRH SCORES HOLDING HAS MORE THAN PASSED THE PROOF OF CONCEPT
