Redwood Group International (RDWD)

[bitter_genius]

Consider this...

Q1 figures indicate that SINO has a gross profit margin of 17%.

Using this figure and assuming that the $1,365,000 Cost of Materials stated in the 10K are all attributed to SINO, then we can calculate that approximately $1,644,000 of the 10K revenue are SINO related.

Ok still with me.

Assume that for the year ending June 2006 SINO made $1,644,000 in revenues.

For Q1 2007 SINO revenues are approx. $750,000. So even on flat revenues for the rest of the year SINO revenues are estimated at $3 million.

If you assume a 20% growth in revenues per quarter then you're looking at revenues in excess of $4 million

$750,000 Q1
$900,000 Q2
$1,080,000 Q3
$1,296,000 Q4

Another question to ask is.

"Was the FSIN deal worth over $2 million to SEIH?"

If it is then REDWOOD is the subsidary that we ought to be hoping for news on.

$2 million per deal in cash and shares means we'd need 1 per quarter to push for $10 million revenues this year.

I'd like to see a PR today advising on either or both of the following:

REDWOOD closing a client deal (I think we'll get one before end of 2006)
Complete aquisition of SINO by SEIH. Or selling of SINO stake for $10 Million.

Final question to the board

"How much do you think our 51% ownership of SINO is worth?"

Kind regards


BG