Market & Research Corp. (fka MTRE)

[53chevy]

To the BOARD: DJIA Q4 Performance ratios are now out, and IBOX has been updated accordingly.......some interesting correlations to remind everyone of:

Facts: DJIA for Stock Valuations
1) The current DJIA average for company valuation is 30x EPS (as of Q4CY08)
http://www.bullandbearwise.com/SPEarningsChart.asp

2) The current DJIA average for company valuation for companies listed under the "Services" sector is 19.57x: MTRE is listed under the sub-sector industry "Business Services", per EDGAR SIC notation, which averages 14.4x EPS
http://biz.yahoo.com/p/7conameu.html

Now look at how MTRE stacks up, using the above and assuming all stipulated acquistions are closed satisfactorily:

Acquisitions
1) Of the three acquisitions already engaged, 2007 revenues are a cumulative $18.2M

2) The combined 2007 EBIT of the three companies is $1.7M or 9.3% and $0.089 EPS, annualized (at 9.3%, MTRE is right in line with the sub-sector industry average of 9.4%)

Equating to:
Outstanding Shares = 19,066,071
$18.2M revenues: 2x = $36.4M, 3x = $54.6M
True Valuation range of stock = $1.91 - $2.86

$1.7M EPS = $0.089 per share
True Valuation of stock = 19.57x EPS = $1.73 (per specific sector), 14.4x EPS = $1.28 (per sub-sector industry niche) and 30x = $2.67 (per overall DJIA avg)


Current Share price = $0.19
Current Market Cap = $3.6M
Current Market Cap as a percentage of Revenue is <0.2x revenues and only 2.1x EBIT!!!

Bottom line: there is significant room for pps improvement here. Based on above, we should expect true valuation pps to be anywhere from 7-15x better than where we now sit

And what if 2008 numbers are better, as we expect?

.........well worth the wait.............and once there, qualified for waivered admittance to AMEX and exposure to institutional investors.........