Rocky Mountain Investment Club

[bliz82]

CMCA DD:

I posted this on the CMCA board when it was trading at .07 and everyone just blew me off. Now it's off another 50%. Fundamentals do matter. It's now down to .037 from a high of .15 when the speculators were bidding it up. Even if they hit their rather lofty expectations imo, you can see the potential is not that great. The pps is at least low enough now where you could make a little cash in the next 12 months but who believes they're actually make 7M in the next year? They first have to build more restaurants, hire and train staff and then make a net profit of 7% just to hit the numbers below. CMCA will not be a big winner. There are a lot better potential winners out there. This is assuming that all the speculation about this shell is correct!

Just a numbers post:

Assuming this will become Monkey Rock and assuming they hit their 7M in revs over the next year (which would seem too soon imo), aren't we already fully valued? What's the average restaurant net profit margin? 4-7% on average?

Let's use 7%. 7% of 7M = 490K in net profit.

490K/89M O/S = .0055 eps x 10PE = .055 20-1PE would yield .11 pps.

I'm not sure where the upside is. Thoughts?