Redman's

[redman_2014]

CCME/CNYD - Comparative Valuation.

Here is a valuation comparison between CCME and CNYD. They are both in a similar industry, have high margins, are growing earnings at 50%+, and are both very undiscovered. I believe once they are noticed they will garner a similar valuation of 15-20, probably no later than the end of 2010.


1)CCME: 39.5M O/S. Current Market Cap: $460M

2009E Net Income - $42M
2010E Net Income - $83.6M

2009 P/E - 10.95
2010 P/E - 6.51 (including 7M incentive shares)


2)CNYD: 20.4M O/S. Current Market Cap: $227M

2009E Net Income - $27M (my estimate)
2009E Net Income - $42M (my estimate)

2009 P/E - 8.4
2010 P/E - 5.04


Potential gain using 2010 numbers and 15-20 P/E:

1) CCME $1.80 eps*: $27 to $36
Potential gain: 131% to 208%
*Includes 7M incentive shares
Future Market Cap: $1.26B to $1.67B

2) CNYD $2.20 eps: $33 to $44
Potential gain: 196% to 295%
Future Market Cap: $673M to $898M


Notes:

1) CNYD's projections are based on my personal calculations, but I consider them to be of a conservative nature. I believe revenue from Yunding Park in 2010 will be much higher than what I used. The summary below explains my reasoning for reaching $42M Net Income for 2010.

2) CCME's projections include the 7M incentive shares because that dilution will occur if the $83.6M is hit, even though the extra shares will not show up until 2011. Actual results will look better at year-end then what I have used, but investors will most likely have priced in the dilution so I included it here.


CNYD Summary:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46161683

CCME Summary:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46374933


-Adam