Q2 Expected Net Income of $1,250,000 in upcoming earnings report: Price per share valuation of $0.257 based on 72,885,980 shares and $0.437 based on trading float of 42,885,980 shares - using conservative P/E of only 15 (restricted shares are not tradable and should not be factored in to the trading value of the stock).
Now, Full Year 2008 Net Income is expected to be between $4 and $5 million based on the current high growth rate of the company and the industry. Forward EOY share valuation of $1.029 based on 72,885,980 shares and $1.748 based on trading float of 42,885,980 shares - continuing to use conservative P/E of only 15. Companies with a growth rate like CJGH normally trade at a P/E of 25+, but we will stay conservative for purposes of these calculations.
Do your own calculations, feel free to figure this out yourselves. With the company reaching profitability last quarter, the company will not need to sell shares to raise funds going forward imo. It is normal for comapnies to keep a cushion between O/S and Authorized shares, just in case they need to sell shares due to an industry downturn, which is definitely not the case here, or if the company needs funds to achieve profitability, which they have already reached last quarter.
Rare opportunity here! Now that the picture is clearer with expected earnings significantly beating Q1 (hinted on by IR) and the share count issue at rest, the share price will trend upward nicely leading up to the record earnings release. More and more eyes are on this stock now and more investors will take a long position, taking the trading float lower.
AI
