InvestorsHub Logo
Followers 1
Posts 370
Boards Moderated 0
Alias Born 11/29/2006

Re: MLK post# 24

Tuesday, 06/05/2007 1:53:02 PM

Tuesday, June 05, 2007 1:53:02 PM

Post# of 80
I am not missing your point, your point makes no sense to me. Your are mixing together facts and assumptions that have no bearing in valuing the company. MSHI is a seperate entity, their financial position no longer has anything to do with TKO other than TKO owning a stake in it. The cash drain that was MSHI is no longer on the books. The equity TKO has in it is an asset on the books, thats it.

If you want to come up with a value for TKO's share price, you need to determine what their sales are and how much of a multiple you would be willing to pay for that growth.

Its not a complicated story, take their sales, divide by the float, multiply by a factor that you are comfortable with. Could be 3, could be 10, depends on the industry.

Example, 25 million in sales, 70 million float. that equates to .35 cents per share in sales. If you are conservative give it a multiple of lets say 5, you get a share price of 1.78. By 10, you get 3.50.

This is simplified and it doesn't take into account future growth and management abilities, etc. but at least you get a starting point.






Join InvestorsHub

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.