BAY STREET

[GordonGecko]

Enablence Inc. ENA.V - Great Growth Play

*ENA.V*(2.20) Great Long-term play,VERIZON going to be involved!!

At least that's what is rumored..This is a huge growth story in Canada. Watch for the bounce coming.

Some raw DD from stockhouse.com;

As for the individual who said $50 sp...are you referring to Seymour Schulich?

That sp would imply a market cap of 8 billion.

Let's say they sell all 100 K per month...that would be $4.5 million revenue per month...approximately or $54 million per year. I'm still unclear on the profit margin here but it should be good. Haywood uses a 46% margin.

Now....growth would be huge if they could do this quickly and demonstrate market leadership. The difficult part would be assigning a multiple.

Regadless...Haywood thinks that $31 million in revenue for 08 gives a $2.75 target...so the target should be $4.80 if they could sell out their line. Further growth would evidently lead to a higher SP.

Therefore, my guess is approximately $4-5 when they sell out their line. Indications for expansion and then following through would push up the SP. Other catalysts would be involvement with the big boys...ie Verizon etc...which should be a given here.

$50? That is at least a couple years away in my view but we can dream.

Other thoughts?

bfw

FROM STOCKHOUSE.COM