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Re: StochasticsRule post# 25358

Monday, 09/21/2009 10:24:19 PM

Monday, September 21, 2009 10:24:19 PM

Post# of 27881
) OTC companies are typically valued @ 2-3x revenues, when revenue is present, and in the absence of profitable earnings (which is usually the case for MOST companies trading OTC)

2) Start-up companies are provided more latitude than "mature" companies, as it is presumed that their growth rates will outgrow the market average. It is therefore not uncommon to see OTC companies with true valuations based on 3x revenues, and up to 30x EPS, when earnings are present.........

Putting it all together, emotion aside, look at what we have with MTRE..........EXCLUDING LHC/LHFE.........

Outstanding Shares = 23,816,071
$18.2M revenues: 2x = $36.4M, 3x = $54.6M
True Valuation range of stock = $1.52 - $3.00 (Even 1x revenues equates to better than $0.75 pps!)

$1.7M EPS = $0.071 per share
True Valuation of stock = 20.36x EPS = $1.45 (per specific sector), 40.60x EPS = $2.89 (per sub-sector industry niche) and 30x = $2.67 (per overall DJIA avg)

Current Share price = $0.30
Current Market Cap = $7.1M
Current Market Cap as a percentage of Revenue is <0.4x revenues and only 4.2x EBIT!!! This is ALL based on 2007 Revenue & EBIT numbers. What will 2009 numbers bring the valuations up to?

Additional Company enhancements:

1) Uplisting (approved Q1CY09 on January 28, 2009)

2) Additional Acquisitions pending, contributing revenues & earnings
> Improved Revenues in 2008, brought on by election year.
> Improved 2009 performance, as economy begins 2H recovery
> Company looks to expand acquisitions (per filings reference).

3) Market Sectors support by synergy of combining 3 regionalized companies into ONE national company: Research field services, Sales & Distribution,Incentive & Recognition programs, Entertainment, Government, Political Polling

Clientele: Sharp Electronics, Travelers Insurance, Hartz, A&P Grocers, Bayer Pharmaceuticals

All of the above is verifiable by information in the IBOX, their Form 10 filing, 10K, News Releases, and the links herein provided.......

Talent hits a target no one else can hit; Genius hits a target no one else can see.
- Arthur Schopenhauer




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