Millionaire Players Club

[cabel]

GBDX, Global Diamond Exchange

Anyone, try to find a company on the pink sheets with better value and better future potential than this:

465 million shares at .005 = $2.3 million dollar Market Cap

CURRENT EXISTING wholesale diamond sales revenues (Nov + Dec 2006 only) = $2.5 million!!! The current 2 month revenues are higher than their Market Cap!!!

Expected 12 month future revenue (very conservative, rumors of double this amount):

$24,000,000 next 12 months or an average of $2,000,000 per month

I read on the internet (see link below), the profit margin for wholesale diamonds can be 50%.

I will use 500 million which gives the company the possibility to issue another 35 million shares if they wish to build the company, actually the company is talking of reducing the number of Outstanding Shares, see PR below. (current Outstanding Shares = 465 million).

$24,0000,000 (12 mths revenue) * 50% (profit margins) =
$12,000,000 of earnings per year .

$12,000,000 (earnings per year) / 500,000,000 (number of shares) = $0.024 (earnings per share)

$0.024 eps * 10 (industry multiple) = .24 (share price) (48 bagger from .005)

$0.024 eps * 15 (industry multiple) = .36 (share price) (72 bagger from .005)

$0.024 eps * 20 (industry multiple) = .48 (share price) (96 bagger from .005)

Even if you half the expected revenue to $12 million or $1 million per month, you could end up, very conservatively with an eps of $0.12 (24 bagger from .005)

Even if you half the profit margin to 20%, you could end up, very conservatively with an eps of $0.12 (24 bagger from .005)

Even if you half the revenue to $12 million AND half the profit margin to 20%, you could end up, very conservatively with an eps of $0.06 (12 bagger from .005)

Almost anyway you slice it this company appears to be a great buy at current prices!

By the way the company just did something you rarely see in a Pink Sheet company. They voluntarily reduced the Authorised Shares from 7 billion to 975 million shares. Currently fully diluted Outstanding Shares is 465 million, as per recent PR:

Global Diamond Exchange Inc. (PINKSHEETS: GBDX) has filed with the Secretary of State of Nevada a restructuring of the corporate stock. When Global Diamond Exchange merged with World Wide Cannery and Distribution, the Authorized Share count was 7 billion shares of Common Stock. It was never Global's intention to have that many shares authorized and management has filed papers lowering that amount to 975 million total shares. The State of Nevada has approved this measure, and it can be viewed on the State of Nevada government website.

Furthermore, company management will look to prevent dilution as a protection for its company and shareholders. Additional share reductions are being examined, and may occur in the near future as the company mulls over retiring some more outstanding common stock.

Also the company wants to increase the number of shipments because of the demand for their high quality Russian diamonds:
The company has also set a goal to have orders cut, processed and delivered for sale on a more frequent basis than the first two orders, in which demand was greater than initially anticipated

Link to information on wholesale diamonds:
http://www.diamants-infos.com/en/rough/index.php?rub=rough_diamond_prices#pricing

Link to GBDX board withb lots of other DD;
http://www.investorshub.com/boards/board.asp?board_id=6411