Salon City Inc. (SALN)

[Stayeven]

SLON REVENUES AND EARNINGS:

Here are my estimates:

200K magazines per issue X 10 issues = 2M mags sold in one year.
2M mags x $3.99 (cost to buy a mag) = $7.98M

45 ads X $10K (cost to place an ad) = $450K in ad revenue per issue.
$450K x 10 issues = $4.5M annual ad revenue

EARNINGS:

$8M yearly revenue for selling the magazines
$4.5M revenue for the ads

minus $2M for printing the mags
minus $500,000 for operating expenses

+ 10M yearly earnings

FORWARD P/E:

The projected yearly earnings is $10M and with approx. 1B shares, that comes to .01 per share.

With a P/E ratio of 20 the PPS would be .20

SLON is only going to continue to grow. The more mags that they distrubute the more they will be able to charge for ads, thus generating more revenue.

WE ARE WAY UNDERVALUED, IMO.

Stayeven