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Re: TheBigLab post# 54835

Tuesday, 07/10/2007 4:34:28 PM

Tuesday, July 10, 2007 4:34:28 PM

Post# of 143047
Great to hear. Sorry if you're not getting a definitive answer to your question, it's just that there is so much going on with Esprit that to try to document all the possibilities here would take a long time.

The company put out what I consider to be extremely conservative revenue guidance last month forecasting that in a year they'll start producing revenue of 3.3 million when annualized. So if you assume that 20% of that will be profit, divide that profit by an outstanding share count of 7.3 billion (that is the latest expected OS with the new purchases EFGO is making) and then give it a standard multiplier of 15 (could easily be 20 or more) you get a fair share price of .00136. The multiplier is used to account for expected future years' profits and is standard on big board stocks since people trade on future expectations.

If look at the asset of the GVHL stock that is owned by Esprit and which wasn't included in the above revenue forecast you get a fair share price of .0017 based on a GVHL share price of .03. See http://www.investorshub.com/boards/read_msg.asp?Message_id=20918466 for details.

Adding just those two together you get a price of .0031. This is very conservative in my opinion. The new Check 21 revenue stream needs to be added in. Although Check 21 was kind of traded for the Chinese Paypal stream, that Paypal stream is now under GVHL. If all the business dealings we're seeing turn out correct, Check 21 could turn out to be incredibly huge. Also we need to add in the ATM business as well as the possible Russian bank deal. I'm probably forgetting some other stuff here, like the Lending Tree type website people here found, with the lending institution connections apparently already set up. That one won't be unearthed until next year according to the company.

Nothing is guaranteed but the future looks very bright for EFGO, notwithstanding the current low pps. In my opinion the .0031 price is very conservative by itself, and even more so with a all the dealings that have been going on lately. I'm looking for a share price between .01 and .03 by the time the 1st qtr '08 financials come out, and somewhere between .03 and .08 by year end '08. I could easily see us hitting .01 before the end of the year, we just need a catalyst to break us out of this low position.

Good luck to you.


All of my posts are just my opinion. Do your own research.