Auri Inc (AURI)

[SmokingUSA]

As you guys know I don't play by fundamentals so,
Just out of curiousity. How far off or how far on, do you guys and gals think this guy is

Re: Loo_ck- What I really mean 2/2/2005 1:10:05 PM
Posted By: loo_ck Msg# 109 of 110



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"I value this company in 2 ways :-

1. where on earth can we find another penny stock Cap at $237m (based on $1/share) with ZERO sales? That's way, way over the norm of about $5m - $80m

2. Mgmt forecast sales of $11m this yr and $55m the next. Assuming that these are fair estimates. Assuming also that we place an optimistic net margin of 30%-40%, that translates to PE of 72x-54x ($237/$11mx30% = 71.8x) at the end of this year. That again is high. A margin of 30% is a very generous estimate. We usually do not see that high a NET margin with all the start-up costs thrown in, the lack of economies of scale, etc.

Having said all that, I am still extremely keen on this stock. I hv been in and out 3x. With all the info that we hv available, I think a fair value wld be somewhere around $0.60 - taking into account the vast enthusiasm surrounding this stock. I re-entered at 1.05 recently, but hv reserved most of my investable $ in anticipation for more serious price decline. I believe any price appreciation substantially above the level of $1 may only be temporary (even in the event mgmt anounce contracts with P.Morris) - unless/until mgmt diverge new sales/contract forecast numbers.

.......just my thoughts."