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Alias Born 01/16/2007

Re: None

Thursday, 01/18/2007 4:12:16 AM

Thursday, January 18, 2007 4:12:16 AM

Post# of 3734
CHID VALUATION

From the November 14, 2006 PR. The facts:

3rd Quarter Earnings per share = $0.02

First 9 months of 2006 EPS = $0.05

Let's be conservative for the 4th Quarter and project earnings to halve at $0.01. So projected 2006 earnings of $0.06 / share. Now the question is what PE multiple to use. Here are 3 scenarios:

1.) .06 * 12 = $0.72 share price

2.) .06 * 10 = $0.60 share price

3.) .06 * 8 = $0.48 share price



Select the multiple that you think is appropriate, but like I have posted here before, CHID appears undervalued in all 3 scenarios.

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