Saturday, September 12, 2009 7:30:14 PM
right now, just on the basis of the flight school alone, imo we are undervalued. let's do some figures.
even if the OS was 400M, which is a lot higher than where it is now, the numbers look really solid imo.
i read somewhere students pay tuition of $67,000 per year, which is on par with most private colleges.
let's say they advertise, franchise out the operation globally, and bring in a total of 200 students.
$67K X 200 = $13.4M in revenues.
what are the margins? if they basically just need a classroom, some instructors, and a few simulators (one of which is already paid for) then i'm thinking the overhead is pretty low. let's say margins are 30%.
13.4 X .3 = $4M net.
now, just to be conservative, let's take that (inflated) OS number again, and plug it in:
4/400 = .01 eps.
at a 15 multiple** that's .15/share. jmho. now add in 4 huge acquisitions and the share price just keeps climbing higher.
** boeing's PE is 16.51 as of friday's close and it's an established company with much less growth ahead of it. so i think this is reasonable for a company like QASP, which is on the very of 4 major acquisitions.
http://finance.yahoo.com/q?s=ba&=
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