Investigative Services Agencies (fka IVAY)

[xZx]

IVAY: **updated** DD for newcomers... some potential numbers >>>

a/s 100M, o/s 40M, float is 4M.

http://biz.yahoo.com/bw/061106/20061106005796.html?.v=1

"Based on the contract IVAY has received, IVAY anticipates that the contract will result in IVAY ultimately hiring 500 agents for multi-year services to the contractor and that ultimate revenues to IVAY will be in the multi-millions of dollars."

let's run some numbers based on 100 agents, because it makes the math pretty easy. keep in mind they have top security clearances. i'm going to assume for these calcs that they can gross $100k/year (this is what IVAY could charge USIS for their services, NOT what IVAY will pay each agent) and that IVAY's margins are 20% (this is incredibly conservative, based on discussions i've had with management).

100 agents X $100k/agent = $10M gross X .20 = 2M net profit

$2M/40M o/s = .05/share net earnings X 20 multiple = $1/share

note this is just 20% of the total agents they plan to hire, ultimately. and this is just one piece of the IVAY puzzle.*

20% margins too low? then how about 40% (still reasonable, imo) = $2/share

and how about that multiple? will investors pay for 80% more growth once the 500 agent goal is reached? i'd imagine so. let's say they give IVAY a 30 p/e, which seems reasonable for a cash cow like this in its early development.

that's .05 X 30, or $1.50/share, partial USIS contract only, with 20% margins, or .10 x 30 = $3.00/share at 40% margins.

these are just guesses on my part, but they demonstrate what's possible with the share structure and the business model (very high margins!) that IVAY has, and *we're not even including what the intrepid defense/lifevision3d acquisition may add to the bottom line, or what their current core business is generating, or what will be added to the bottom line as they acquire more detective agencies across the country.