RadicalHabits
There is no set formula to fairly value companies.
Companies that are generating revenues, cash flow and profits typically get a P/E of 12 - 25, depending on the growth and future growth as well as balance sheet.
Companies that don't have revenues, cash flow or even have a weak balance sheet are given a completely different formula to calculate their market cap. Companies like biotechs, technology and Coates true value would be based on future sales and EPS.
Different formula for each company and industry, in Coates scenario, I need to know what sales are going to be in 2011 and 2012. What the profits are going to be and how many shares are going to be outstanding.
For example, if Coates sales in 2011 are going to be $200 million and profits for the year-end are going to be $20 million (10% of revenues) and the company has 200 million shares outstanding, then I would calculate that fair value for the stock would be $1.50.
With 200 million shares outstanding and $20 million in profit, that equates to 10 cents earnings per share.
I would give Coates stock a P/E of 15 which equates to $1.50 a share which is fair value.
If by chance 2012 has better numbers than 2011 then we can give COTE a P/E of 20 which equates to $2.00 a share.
At $1.50 a share and 200 million shares outstanding, it gives Coates a $300 million markep cap which is probably fair and I am guessing that a large company car company, engine manufaturer, or someone else would pay $300 million to acquire Coates.
The above numbers are all hypothetical.
Now you know why I need to speak with management.
As for me telling 46,000 people about Coates and them buying the stock and driving the price to $1.50 a share. I am not doing anything illegal.
I would invest $150,000 in the stock which is my average investment and if I get in at an average price of 30 cents a share I would own 500,000.
If I sell my shares at $1.50 a share I would have net proceeds of $750,000 which equates to a Net Profit of $600,000
My cost to mail post cards and send emails is set at $12,000.
$600,000 minus $12,000 = $580,000 profit
Government gets 35% which equates to $203,000 for them and $377,000 for me.
It's 35% because its short term capital.
Depending on how long it takes me to buy up the shares (usually 6 weeks) and then once post cards and email goes out usualy only takes me 2 weeks to sell the stock.
As for the post card and emails - nothing illegal. I don't say anything that the company hasnt already made public or told to me. I simply use my fair valuation and show people that the company is worth more than the current stock price shows.
As for Dan Dorfman? I dont know who he is.
As for you being embarrassed for me. Don't be. You live in New Jersey and continue your life and as long as you dont step on my toes I won't step on yours. Nor will I ever be embarrassed for you. What you do, Who you are, and How you make a living is your business.
I do 4-6 deals a year. I own a deli that does $600,000 a year in revenue and after all expenses and taxes gives me a $175,000 annual profit. Combine that with stock profit of about $1.2 million a year I am getting by.
I no longer have to work at the deli but I go in almost everyday to check up on things.
I am a 'radical' and aggressive person that when confronted will use my resources to get the truth and if lied to or deceived I will retaliate.
I dont hide behind emails, posts or anything else. If someone is man enough to want to meet with me then I will do so. If they dont want to meet with me and I determined that I have been lied to or deceived, I will find the person. People (message board posters and emailers) do not typically realize that finding a person is very easy.
Criticism on these boards is acceptable to me.
CEO or someone from a public company lying to me is not acceptable and requires a visit.
My friends, family and associates make money along side me.
These same people also are the ones that assist me finding the person that I need to find.
Coates has some answers to give me before I invest, before I tell my people to invest, and before I send out post cards and emails.
George and his people better not lie, or a visit from me will occur.
