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[Hey]

ASFX Awesome

Posted by: stervc Date: Thursday, August 21, 2008 9:56:03 AM
In reply to: None Post # of 3585

ASFX .30+ Valuation Logic to View…

From listening to the video below, The CEO, Dr. Tirotta, stated they are authorized to sell the laser thermometers retail from a wholesaler in Europe which owns the wholesale and patent rights for this Class II Medical Device that has FDA approval:

More can be learned about the laser thermometers from the below links:
http://www.kidzmed.com/ccp0-prodshow/01500.html
http://www.kidzmed.com/ccp0-display/Thermofocus_FAQ.html

From the links above, you will see that ASFX sells the laser thermometer at a retail price of approximately $60.00 per laser thermometer.

It has been discovered from the company that the complete and total cost for ASFX to manufacture, package, and ship one laser thermometer to their customer is approximately $34.00 per laser thermometer.

It has also been confirmed that since the retailer will pay approximately $60.00 per laser thermometer, which can be verified from the ASFX website, the difference of that approximately $34.00 from the approximately $60.00 has been confirmed to be approximately $26.00 of pure profit for ASFX.

Let’s now put this in perspective with the last two PRs from ASFX:
1-ASFX major contract PR on 18 Aug 08 confirms that it is from Toys”R”US. See below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31545042
2-ASFX receives $5 million funding commitment to fill Purchase Orders:
http://biz.yahoo.com/bw/080820/20080820005855.html?.v=1
http://biz.yahoo.com/bw/080818/20080818005503.html?.v=2

Fact: Toys”R”US has over 1500 stores worldwide. ASFX has signed a open-end contract with Toys”R”Us to allow them to be positioned to grow into generating the supply to meet the demand for Toys”R”Us huge purchase requests.

It has been confirmed that Toys”R”Us are paying the retail price of approximately $60.00 per laser thermometers just like everyone else as like how the CEO, Dr. Tirotta, had mentioned in the video above that their agreement with the European company is to sell retail.

This means that ASFX can now take that $5 million in non-dilutive financing and have manufactured, packaged, and shipped the below amount (rounded down) amount of laser thermometers:

$5,000,000 ÷ $34.00 = 147,058 Laser Thermometers

Now with the $5 million in financing, ASFX can fill a Purchase Order (PO) Request to sell those 147,058 laser thermometers to Toys”R”Us at a retail price of approximately $60.00 per laser thermometer for a total mount for Revenues generated below:

147,058 laser thermometers x $60.00 = $8,823,480 in Revenues

The below amount is the profit that goes to ASFX from such deal:

147,058 laser thermometers x $26.00 = $3,823,508 in Profits

So in essence, ASFX spends $34.00 to get $60.00 back in return to profit $26.00. That $26.00 is instant profits and creates instant profitability for ASFX.

Another way of looking at it… ASFX spends $5,000,000 to make $8,823,480 in Revenues to pay off the Expense of $5,000,000 to make 147,058 laser thermometers to pocket $3,823,508 as Net Income/Profit. That’s a profit margin of 43.33% for ASFX derived by…

$26.00 ÷ $60.00 = 43.33% Profit Margin

Now let’s derive an Earnings Per Share (EPS) amount to affix valuation to ASFX from the $3,823,508 in profits with the current ASFX Outstanding Shares (OS) amount to be 151,739,928 Shares.

$3,823,508 ÷ 151,739,928 OS = .025 EPS

With using 12 as a conservative PE Ratio for the growth rate of which its industry would trade in would mean that ASFX should fundamentally be trading at .30+ per share as indicated below:

12 PE Ratio x .025 EPS = .30 per share ASFX Valuation

I am expecting for this valuation of ASFX being fundamentally worth .30 per share to increase as more and more financing if committed to ASFX as what we should expect from what was mention in the PR above… American Scientific Resources and Kidz-Med will announce additional financing news as warranted.

Now let’s recap some further ASFX info to better put things into perspective:
** Financing of $5 million dollars with Ashford Finance, Inc., a prominent New York based corporate financing entity:
http://www.ashfordfinance.com/

** The money will be strictly used to fill Purchase Orders.

** An additional line for inventory financing is also in process, which will enhance Kidz-Med’s operational cash position.

** The financing is being done to grow ASFX and to give confidence to our current and future vendors. Expect more contracts from more major companies.

** Dr. Tirotta, the ASFX CEO, specifically stated that the Purchase Order financing is done without incurring dilution and has nothing to do with equity. NO DILUTION!

** Recently announced that ASFX is supplying the world’s largest baby retailer and that this is a major step forward for ASFX. They are referring to a multi-million contract with Toys”R”Us in which you can confirm by calling the company or reading the post below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31545042
(The packaging process has commenced.)

** ASFX doesn’t have to worry about any kind of patent infringement from lesser quality models because ASFX do not own the patents. ASFX only has the "Exclusive Rights" to sell the laser thermometer retail in North America from a company in Europe who owns the patents for this Class II Medical Device that already has FDA approval. Also, I verified that SSFX is free from such from calling and speaking with someone at the United States Patent and Trademark Office (571-272-0600):
http://www.uspto.gov/web/patents/contacts/tcmgrs.htm

** ASFX is current with their quarterly filings and have 4 years worth of audited financials.

** Patented and FDA approved products:
http://www.kidzmed.com/index.php?ns=prodshow&ref=01500
(Watch the video of their FDA approved laser thermometer above.)
http://www.kidzmed.com/
http://www.heartsmartsystem.com/

** KiDz-Med is already selling products in 6,000 Walgreens Drug Stores all across the country as well as CVS.com, Amazon.com, BabiesRUs.com, Cardinal Health, Legacy Medical, eGeneral Medical, Safeguard Medical, Chelsea & Scott, and Emergency Medical Products, among others.
http://audiostocks.com/company.php?id=220

** 400% increase in Revenues for QTR 1:
http://biz.yahoo.com/iw/080421/0388651.html

** Great Board of Directors:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28630549

The above are thoughts as to why I think ASFX is significantly undervalued from doing my due diligence (DD). They also have plans of leaving the pink sheets forever as you could also probably guess for being ”one” of the reasons for the 4 years worth of audited financials.

ASFX has all of the qualities that everyone that invests in the market looks for in a stock for growth.

v/r
Sterling