Sulja Bros. Building Supplies, Ltd (SLJB)

[Visiontrack]

Another nice read from someone else on the board.

One thing some folks here have to realize...This is not "THE" run. It is just "a" run...Look at the chart and you will see it is a 3rd step in the transition...The 1st I recall took it from .007 to 4+ cents with a base @ 2-3....The 2nd took it to 15 with a base @ 7-8 and now we are experiencing the 3rd....How High? I say around 45 cents with a base around 25. Just throwing some numbers out there for the weekend.

There will be more steps for some with bigger vision...But just like the step at 4 and 15 there will be people getting off the train. And that is o.k by me. It has not stopped the show yet. Everyone is not going to make it to the destination...



"The current outstanding shares are 500 million. There are 362 million shares held by insiders. Of the 362 million insider shares, 162 million are restricted. There are 138 million shares in the public float. The number of inside owners, of 10% of common class shares, decreased after the reverse merger. The increase of outstanding shares from 200 million to 500 million excluded holders of 20 to 50 million shares from insider status.


Authorized shares is the legal limit to the issuance of shares. There is no change to the share structure until they are issued.

Often times corporations have authorized shares many times the outstanding shares. In determining dilution, EPS, PE, and other financial analyses, one uses the number of shares outstanding, not authorized.

I feel the most important number is the one that determines the share price and that is the FLOAT, where the supply of shares works against the demand for shares.


With 500 million shares outstanding:
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15.6 million net earnigs divided by 500 million shares =

EPS of aprroximately 0.032

A PE multiplier of 30 is not unreasonable with the proforma numbers stated, so

0.032 X 30 = 0.96 is a resonable estimate for the stock after audited financials.

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around 100 million proforma earnings divided by 500 million shares =

EPS of 0.20 (forward looking)

If they can continue to grow in the Middle East a PE of 30 is not unreasonable

0.20 X 30 = 6.00

Many will argue with the PE but high growth stocks with great margins and earnings typically exceed a 30 PE. When the growth calms down, the PE will fall to the 15 to 20 range on the earnings.