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Monday, 08/10/2009 3:50:47 AM

Monday, August 10, 2009 3:50:47 AM

Post# of 112647
Hmmmm, with LDSR...

Ok, I just read one of their recent PRs again. This is not me talking, but this is from the company/CEO...

http://finance.yahoo.com/news/LandStar-LDSRPK-finalizes-83-prnews-723076958.html?x=0&.v=1
...From our perspective, we believe that our shares are more properly valued at 1.75 cent per share, rather than the current trading range. ...

I had to look again to make sure it was not $1.75 per share. I am sure now it is .0175 per share. I am guessing that we will see further announcements to confirm why the CEO feels as such about his company. That’s a very serious Market Cap that he is inferring considering that he stated in that PR that LDSR’s OS is 4 billion shares. At .0175, that’s a Market Cap of…

.0175 x 4,000,000,000 = Projected Market Cap
$70,000,000 = Projected Market Cap

That is the company believing that even after trading at .0175 per share that LDSR is still 4.16 times undervalued based on the assets reported on their website and the current share price of .0042 to derive their current Market Cap of below…

.0042 x 4,000,000,000 = Actual/Current Market Cap
$16,800,000 = Actual/Current Market Cap

$70,000,000 ÷ $16,800,000 = 4.16 times Projected Market Cap

Things could continue to get a little more interesting than what they have been thus far. So far, they do have a very nice and convincing website although I’m easy to please with website appearances:
http://www.landstarcorp.com/

Here's what they posted on their website:

Revenues: 15 million USD
Assets: 10 million USD
Debt: 5 million USD


Let’s consider another Fundamental Analysis that is also considered within the market to assess the value of where a stock should fundamentally trade. Based on the numbers posted on their website, the total amount for Income equals $10,000,000 of which is unknown if it is Net Income or Income before EBITDA, but here is how that figure was probably logically deduced based on the company entering a .0175 per share valuation in one of their previous/recent announcements…

Consider the variables below per their earlier PR and from their website…

OS = 4,000,000,000
Revenues = $15,000,000
Debt/Expenses = $5,000,000
Income = $10,000,000

Revenues – Debt (or Expenses) = Income
Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

$10,000,000 ÷ 4,000,000,000 = EPS
.0025 = EPS

12 Conservative P/E Ratio/Multiple x .0025 = .03 per share

Now, I’m guessing that the .03 per share is the consider EPS derived from Income before EBITDA. The company placed in their PR their value to be .0175 because of them calculating in the Net Income after EBITDA from numbers used to justify what was PR-ed and placed on their website after doing the math.

From a Market Capital perspective, the company believes that even after trading at .0175 per share that LDSR is still 4.16 times undervalued based on the ”Assets” reported on their website. That equates to a share price of …

.0175 x 4.16 = .0728 per share

All, please understand, I’m not saying that LDSR is going to be going to the pennies from here as I can’t control those market forces. However, I am saying that I believe that the company believes that LDSR is significantly undervalued at these current levels based on the company’s data to justify their Market Cap and EPS derivation. Given all of the volume over the past few days to cause such price increases, definitely others believe as what the company believes too. So far, LDSR is trading as if it’s very real and as if bigger news is coming to further justify their stance.

v/r
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