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Re: jyjreyes post# 13493

Tuesday, 05/04/2010 6:06:34 PM

Tuesday, May 04, 2010 6:06:34 PM

Post# of 16707
Just note that "23 million in sales" does not equate to 23 million in earnings, more like ~$6 million in earnings after you account for a 25% profit margin...which is a typical profit margin for this industry. $6 million in earnings with a PE of 3-5 still gives you a ~$0.65 - $1.30 /pps. Not sure what PE to use for this industry. I have heard conservative estimates of 5 all the way up to 20.

Cesari Direct, et al defined a successful product as a product that could deliver $20-70 million in revenue over the life of the infomercial. Cesari Direct has successfully acheived this mark with 70% of its products.

If TSHO can put on 3-4 products / year consistently with this engine behind it...then, although it is still "speculative", I am not afraid to put my hard earned money behind it.