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Re: Dem Franchise Boyz post# 33637

Monday, 01/28/2008 12:48:18 PM

Monday, January 28, 2008 12:48:18 PM

Post# of 137667
Posted by: alexindef
In reply to: BuckeyeMike who wrote msg# 31157 Date:1/26/2008 11:33:52 AM
Post #of 33394

Simple calculation:
Current Market Cap:
$.006 x 400M = $2,400,000 (really funny based on revenue projections)

with only 1/2 of projected revenue ($14M):
EPS $14M/400M = $.035 (dividend payments are not expected yet)
conservative multiplier for auto is 7+
PPS $.035 * 7 = $.245 - Market Cap should be $.245 * 400M = $98M

fears of changes in share structure? here we go:
1. say, O/S is 500M -
PPS = $14M/500M * 7 = $.196 MC = $.196 * 500M = $98M
2. say, O/S is 700M -
PPS = $14M/700M *7 = $.14 MC = $.14 * 700M = $98M
3. say, O/S is 1B -
PPS = $14M/1B *7 = $.098 MC = $.098 * 1B = $98M

Get it? Market Cap on 1/2 of projected revenue is $98M even with changes in share structure. Think as soon as all naked stuff, Carnes problems, etc. will be solved and revenue #s will be published - investors will start to evaluate Revenge from the financial side and bring more into.
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