The Hunt for the Next 10 Bagger

[nonewname1]

SARO, just read this!!!

Easy 10 bagger, dd copied from Tvmetguy,

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48392956


SARO-Detailed Valuation + NYSE Buyout Candidate

1) Comfort Systems USA; NYSE:FIX, owns 85 separate HVAC operations across the U.S. and buys companies like SARO.pk all of the time.

http://phx.corporate-ir.net/phoenix.zhtml?c=67677&p=irol-newsArticle&ID=1397189&highlight=

2) FIX generates roughly 3-5% NET profit margins, applied to SARO.pk this would be 1.05-1.75 mil on 35 mil revenue.

3) FIX had revenue of 1.3 bil in 2008, and 1.1 bil in 2009. SARO.pk had rev of 45 mil in 2008, and 35 mil in 2009, both about a 20% decrease.

4) Lets assume a 10% revenue increase for SARO.pk for 2010, that would be rev of 38.5 mil. Lets use 4% net margin. That is 1.54 mil net profit for SARO.pk for 2010 estimated.

5) Consider FIX has assets-liabilities= 303 mil or roughly 27.5% of revenue. For SARO.pk, assets-liabilites should be 10.58 mil estimated.

6) Putting it all together, I estimate SARO.pk to have assets of 10.58 mil, 1.54 mil net income for 2010, on 38.5 mil revenue. HVAC PE is 12, will use 30 though due to high spec, possible higher margins, and the fact that SARO.pk should be an aquisiton target in itself from FIX. 1.54/2800= .00055 EPS, use PE 30, get a PPS of .0165

7) In general, a .0165 PPS for SARO.pk is very accurate and will be realized as soon as the financials come out. Keep in mind, with varying PE and a varying profit margin, we could see a PPS of anywhere from .01-.03. As we know though, SARO.pk itself is looking for aquisitions, so maybe they will get their rev and profit higher than what I estimate. Also, they have their own proprietary software for climate control, so their margin may actually be much higher than what I estimate.

8) Bottom line, this is multi-pennies easily, and soon.



.0008? More like .008, and soon.