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Re: creede post# 1764

Thursday, 09/21/2006 1:58:07 PM

Thursday, September 21, 2006 1:58:07 PM

Post# of 15247
I'm using a Net Income assumption of 15% of gross profits and a P/E of 20, which both seem like reasonable assumptions to me compared to their competitors ALREADY on major exchanges. I have already built in the assumption they'll move up when they can. If you wanted to give them the benefit of doubt that they could accomplish 20% Net Income, then the share price would be valued (compared to how peers are currently performing) at $2.66. Either way, the company appears to me to be a few years away from these numbers, assuming all goes well.

I just don't believe that picking up the major clients they want will be as easy as they claim. Of the other revenue streams you mention, I only see licensing as having the potential to significantly impact revenues. I don't even know what "special ops security" means...

That said, I think this looks to be as good a LONG term pink investment as any, but I would not expect this to get anywhere near $1 in the next year.
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