Northern Percentage

[vantillian]

EXPU here's why---->>>>

EXPU UPDATED DD POST




Expert Group’s primary revenue engine is “Expert Financing.” This company specializes in providing residential and commercial loans and has been in business since 2005 in the Florida marketplace.

Recently, Expert Financing has experienced a notable surge of growth, showing a solidly profitable 2009 Q3 and what appears to be an even brighter future.

Expert has also assisted in loans for luxurious projects like the Icon Brickell, Aventura Marina, Williams Island, the Continuum in South Beach, Aqualina and The Trump in Sunny Isles Beach.

This presentation will deal primarily with Expert Financing and showcase their achievements as well as speculate about their future potential.

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2009 has been a significant year for Expert Financing. Several milestones were reached. Some of these include:
Expert secures FHA lending status.
Expert partners with several new banks and lending institutions, including Ginnie Mae.
Expert opens two new locations.
Expert greatly increases originators and originations.
Expert begins offering Government backed SBA loans
Expert enhances brand recognition through television, billboards, and special features such as The Best of South Florida. http://www.bestofsouthflorida.tv
Expert added to their management team as well as adding processors to their back office.
Expert currently has 65 originators actively working to secure new business.
Expert was featured prominently on Mortgage Daily, the largest publication in the industry. http://www.mortgagedaily.com
Expert will celebrate the grand opening of the BAL Harbour location this November. At this event the company will receive the prestigious Proclamation Award from the city of Bay Harbour Island.
Expert Group signed with 10 new banks in 2009 including Bank of America. This brings Expert’s alliances with banks to 50. Because of these strategic partnerships Expert can find more people better loans. Expert Finance's loan closing rate is well above average within the industry.
SOURCE: http://www.marketwire.com/press-release/Expert-Group-1067596.html

VIDEO: Grand opening celebration of Bal Harbour location...Expert presented with two prestigious awards by the cities of North Miami Beach and Bay Harbor, respectively.

More videos: http://www.youtube.com/user/expertgroupinc

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EXPU SHARE STRUCTURE

As of November 2009
Authorized Shares = 100,000,000
Outstanding Shares = 43,661,833
Float = 22,134,412


The EXPU Transfer Agent is not gagged. Investors can call the TA and receive current share structure information.
Phone: [phone]

As per an October 2009 press release, CEO Robert Rico stated that all funding for 2009 had been completed.
Our understanding from this recent PR is that the share structure will remain stable at least until sometime in 2010.
Rico also said: “…I'm pleased to report that we're headed into 2010 with a good pool of capital.” http://www.marketwire.com/press-release/Expert-Group-1067596.html
It strongly appears from these statements and information that the 22M float share structure is currently solid. http://www.marketwire.com/press-release/Expert-Group-1067596.html

Expert Group also recently lowered the A/S from 200B to 100M, representing a 95% decrease in authorized shares! http://www.marketwire.com/press-release/Expert-Group-1014274.html
On 9/30/2009, Expert Group completed the 95% share reduction. Here is a link to the reduction filing at the Nevada S.O.S. https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/corpActions.aspx?lx8nvq=T%2bq%2fzU1uzKn71j442j1w7Q%3d%3d&CorpName=EXPERT+GROUP,+INC.


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ABOUT THE CEO

Robert Rico is chairman of the board of directors of Expert Group Inc. as well as the chairman of Expert Financing & Investments Inc. a company he co-founded in 2005. Expert Financing has been originating conventional and government loans since its inception. The company started as a retail firm providing millions of dollars in real estate loans to all types of borrowers including domestic and foreign nationals for all kinds of properties including condominiums, single family residences, town houses, commercial buildings like hotels, strip mall, gas station, restaurants, warehouses, industrial facilities and day care to name a few. Expert has also assisted in loans for luxurious projects like the Icon Brickell, Aventura Marina, Williams Island, the Continuum in South Beach, Aqualina and The Trump in Sunny Isles Beach. The company operates as a public company with its shares trading on the over the counter under the stock symbol EXPU. As a loan origination and marketing firm, utilized as an independent outsource platform for several national and regional community banks. "We have originated and closed millions of dollars in loans since our inception with steady production consistent to date." Robert Rico is a self-made entrepreneur with experience in both the public and private sector with a clear vision for Expert Financing to become the "go to firm" for all your real estate lending needs.

SOURCE: http://www.marketwire.com/press-release/Expert-Group-1072774.html

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BRANDING THE EXPERT NAME

Robert Rico has stated repeatedly that Expert’s goal is to become a “household name.” Expert has taken several steps in 2009 to become more recognized in their target markets. http://www.marketwire.com/press-release/Expert-Group-1060141.html

“We are taking all the right steps necessary to fulfill our business plan of opening multiple locations and branding Expert Financing as the go-to firm for all your Real Estate Lending Needs.” http://www.marketwire.com/press-release/Expert-Group-1060141.html

“We are successfully branding the 'Expert Financing' name all over the Florida marketplace. We offer people the absolute best deal on home loans. Our closing ratio is higher than other lenders.” http://www.marketwire.com/press-release/Expert-Group-1060141.html

BILLBOARDS: http://www.expertgroupblog.com/2009/10/our-new-billboard-is-up/

RADIO ADVERTISEMENTS: http://www.expertgroupblog.com/2009/09/expert-group-current-radio-advertisements/

TELEVISION ADVERTISEMENTS: http://www.youtube.com/user/expertgroupinc#p/a/u/2/DgjAKwQD32c

BEST OF SOUTH FLORIDA TV SHOW: http://www.expertgroupblog.com/category/expert-group-on-tv/

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TALKING NUMBERS

Loan Originations Are Good But Loan Closings Are What Really Matter
Expert Group realizes between $4,000-6,000 for every loan it closes. http://www.marketwire.com/press-release/Expert-Group-1042684.html

Expert Group closes approximately 1 loan per month for every working originator. http://www.marketwire.com/press-release/Expert-Group-1060141.html

Let’s refer to this as the “1 Originator = 1 Closed Loan Per Month” Formula.

Expert realizes on average $5,000 per loan closing. http://www.marketwire.com/press-release/Expert-Group-1060141.html

Profit margins for Expert are solid. Expert boasted a 61% profit margin in Q3 2009. http://www.marketwire.com/press-release/Expert-Group-1071631.html

Profit margins are high in part because of low overhead and performance-based payouts: “Originators are compensated based on performance.

Originators do not get paid if they do not close loans.” http://www.marketwire.com/press-release/Expert-Group-1060141.html

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PPS VALUATION SCENARIOS -- Q3 2009

Expert recently enjoyed 2009 Q3 Earnings Per Share of $.0044 cents http://www.marketwire.com/press-release/Expert-Group-1071631.html

“The Company recorded net income of approximately $187,192.17 or $.0044 earnings per share, for the quarter ended September 30, 2009. This represents a 350% increase when compared to total net income for the quarter ended September 30, 2008.” http://www.marketwire.com/press-release/Expert-Group-1071631.html

.0044 x 4 (quarters) = .0176 annual EPS

A P/E multiple of 10 is the standard multiplier for companies within the mortgage industry.

.0176 x 10 = .176

Using a P/E multiple of 10 this puts EXPU at approximately .176 cents per share based on 2009 Q3 numbers alone!

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MORE PPS VALUATION SCENARIOS -- Q4 2009 / Q1 2010

Scenario: 100 Originators

"Expert Group projects that by year's end [2009] we will have our 3rd location open and have a total of 100 originators operating. With 100 originators we conservatively project that we will close 100 loans per month.” http://www.marketwire.com/press-release/Expert-Group-1042684.html

100 x $5,000 = $500,000 monthly revenues

Using a profit margin of 50% this means $250,000 monthly net income for Expert or $750,000 quarterly net income.

This would mean $.0175 earnings per share for Q1-Q2, 2010 (based on 43M o/s).
.0175 x 4 = .07

Using a P/E multiple of 10 this would put a value of about 70 cents per share on EXPU stock in this scenario.

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MORE PPS VALUATION SCENARIOS -- MID 2011

Scenario: 400 Originators
“By mid 2011, Expert plans to operate at full capacity with 400 originators at 9 different locations.” http://www.marketwire.com/press-release/Expert-Group-1042684.html

400 Loan Closings Per Month

$5000 average per loan closing

$2,000,000 per month revenue

50% profit margin this means $1M monthly in net income for Expert.
This would be $3M in quarterly net income.

Quarterly earnings per share with a 43M o/s would be approximately .07 cents per share.

.07 x 4 (quarters) = .28

Using the industry standard PE multiple of 10 this gives EXPU a valuation of $2.80 cents per share in this scenario.

It should be noted that all of these valuations do not take into account several “X Factors” that may greatly and positively impact net income. (Jumbo loans, partnerships, etc.)

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MORE DD LINKS



Very good investor presentation here ---> http://investorshub.advfn.com/boards/read_msg.aspx?message_id=43384098

http://www.expertgroupblog.com

http://www.expertfinancing.net

IHUB BOARD: http://investorshub.advfn.com/boards/board.aspx?board_id=12049