The key will be to determine what's the fair amount to deduct as "Net Expenses" to determine what's the amount for "Net Income" or what you might simply see referred to as Income.
$55,463.63 x 12 months = $665,564 Annual Net Expenses
$2,000,000 Revenues for 2008 - $665,564 Annual Net Expenses = $1,334,436 Net Income
Net Income = $1,334,436 Outstanding Shares (OS) = 1,000,000,000 Shares
See below to see how I derived the Earnings Per Share (EPS):
$1,334,436 ÷ 1,000,000,000 (OS) = .0013 EPS
12 Conservative PE Ratio x .0013 EPS = .0156 per share value
This means that with using a conservative growth rate of 12 for the Industry in which it would trade, PNHL is currently worth .0156 for the year 2008.
Now the key thing to understand is that this does not take under consideration the value to be added from having the operating subsidiary of Extreme Fitness, Inc. I think the PR today shows more promise than what the market realizes right now. I still think it’s just a matter of time before PNHL is realized for its true value.
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