MMMary pumps a $22.00 share price for a 30c stock....
hscott and cyclinsam predict $22.00 per share if sales approach 100M.
MARY AGREES AND SAYS THEIR NUMBERS ARE SOUND
by: hscott97 09/19/00 02:37 pm EDT
Msg: 7874 of 14170
I disagree that this is a dead market. HDI is selling about $3 billion per year, trades at 5.5 times sales. Ultra sells about $25 million per year, makes a decent profit at that level. If BIKR concentrates on cash management and does not do anything stupid, it should do well.
HDI has only about 45% market share (per their on statements). That means there is at least another $4 Billion in sales for Ultra to pursue, particularly since its competitors are dropping like flies (Excelsior-Henderson, Titan, etc). If BIKR can boost sales to $100 million within three years, and it were to trade at only 1-2x sales (vs. HDI at 5.5x sales) the market cap for BIKR could be $100-200 million. There are about 9 million shares outstanding. That equates to a market price of $11-22/share.
Will it be easy to get there? NO. It will be very difficult. But, it is possible. The company, under Hal's guidance, has shown a desire to survive. If it gets through this next year, with the Finova situation resolved, an increase in dealers and possibly an equity infusion, there is no reason why this cannot be a $100-200 million company.
Mary agrees and says "the numbers are sound"
by: the_unknown_poster Mary (34/F/Los Angeles, CA)
09/19/00 05:19 pm EDT
Msg: 7876 of 12051
Great points and I agree. If they stay profitable, refinance FINOVA and safely grow
BIKR, there should be a good return here. Your numbers are sound. I know Hal and his
team are capable of this
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