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Re: None

Friday, 03/04/2011 2:26:49 PM

Friday, March 04, 2011 2:26:49 PM

Post# of 2339919
FBCD Blast Off Commencing

LOWWWWWW FLOATER!

Research from another poster:

FBCD .27 to .82 Per Share Valuation Thoughts…

Here's what I have concluded to be a conservative ”potential” valuation for FBCD from the public info that is known from FBCD that could support a price trading within the .27 to .82 per share range, conservatively speaking. I saw where the CEO stated within an interview that they are expected to make at least $8,000,000 in Revenues this calendar year with a gross margin of 52%:
http://www.livetradingnews.com/chris-le-clerc-super-rad-toys-marvel-22876.htm
Fiscal Year End is July 31 for FBCD, with many new launches coming along with the Comic Con show in San Diego, CA so this number could still be conservative, but let’s consider the valuations below from the company generating as they believe for now to derive a fundamental valuation:

$8,000,000 x .52 = $4,160,000 in EBITDA

Now when you figure in the EBITDA, I think it’s conservative to presume an at least 50% profit margin figuring that taxes and interest expenses would not be 50% greater than the gross margin of $4,160,000 mentioned above to have a derived Net Profit amount indicated below:

$4,160,000 x .50 = $2,080,000 in Net Profit/Net Income

That’s an Earnings Per Share (EPS) for the year 2011 indicated below, considering that their Outstanding Shares (OS) of 93,579,262 shares…

$2,080,000 ÷ 93,579,262 (OS) = .022 EPS

Now, let’s use a 12 conservative P/E Ratio to multiply the EPS by and you get below for where FBCD should be trading compared to the other stocks within the Advertising Agencies Industry in which where it trades…

12 Conservative P/E Ratio x .022 EPS = .264 per share

This is huge and I think as investors begin to learn about this, they will see that FBCD is significantly undervalued. Here’s why I say significantly undervalued. It actually gets even better because if you go to the Yahoo link below, you will see that FBCD actually trades within the Advertising Agencies Industry and actually has a 27.10 P/E Ratio as of today:
http://biz.yahoo.com/p/720conameu.html

This means that technically speaking, we should have used 27.10 as a multiple instead of 12 for being exact and it would be officially justified in doing so to warrant a price for FBCD trading in the price range below…

.022 EPS x 27.10 Actual Industry P/E Ratio = $.596 per share

Now this is all based on the company generating what they have told us in the company’s interview below (from the transcript) to be generating $8,000,000 in Revenues with 52% gross margins:
http://www.livetradingnews.com/chris-le-clerc-super-rad-toys-marvel-22876.htm

Below is the gross margin for the FBCD competitors and the Industry to compare and contrast which should further help to see how undervalued FBCD is considering the much room for growth that exists:
http://finance.yahoo.com/q/co?s=MAT+Competitors

They have a lot on their plate as from what we have discovered and they have a lot of contracts already signed. I can believe this by just looking at who they are in bed with for obtaining deals from looking at their website and summaries below…

From their Executive Summary, I see where they are currently working on licensing deals with Marvel Comics, Warner Bros./Hanna Barbera/Looney Tunes, Dreamworks, and United Media:
http://www.superradindustries.com/pdfs/ExecSum.pdf

Additionally, from their Grass Roots Summary, I see where they are presently negotiating licenses with Disney, Marvel and Warner Brothers to name a few:
http://www.superradindustries.com/pdfs/GrassRoots.pdf

SRC is their subsidiary that has developed properties including Dr Seuss, Love Is…, Tootsie Roll Industries, and Yo! MTV Raps to name a few. SRC has acquired evergreen and commercially viable licenses which attract much attention through grass roots marketing and PR campaigns with some traditional advertising and major promotional events such as Artist signings:
http://www.superradindustries.com/about.html

I see where they are in negotiations with a candy distributor and wholesaler to collaborate on a line of Tootsie Figures that would come packaged with actual candy. This will be huge:
http://www.superradtoys.com/about/SuperRadToysExecutiveSummary.pdf

Ok, I’m convinced that FBCD could really be huge, especially with this beautiful share structure below:

Authorized Shares (AS) = 150,000,000 Shares
Outstanding Shares (OS) = 93,579,262 Shares
Float Approximately = 43,000,000

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