Rookie,
I know the potential that exists when projects are rolled in and plant construction can begin, but I believe the use of "historical" simply means "in the past", as in, there are already revenue producing components from the Seawind merger.
On a different note, what a day! First time in my few years in the market that I've managed a 100% paper gain in a day, and I'm definitely looking forward to tomorrow and Monday! Not sure how long I intend to hold, as current expenses take priority over future profit, but I'll be looking to make as much as I can with my 3k shares until that time comes.
Now I do have a question for those more knowledgeable than I. We all know the potential that exists here, with the possibility of 2.5GW of projects to be transferred to 3Power's portfolio. However, that is what this entire merger is all about, future potential. My concern is with the current valuation of PSPW after completion of the merger. Given what we know so far, in that Seawind is receiving as many shares as Rudana holds at time of merger completion, and Rudana holds ~21 million shares, that would put us around an O/S of 61-62 million, barring any additional shares being transfered to Rudana in the merger process.
Seeing as how Seawind (as far as we know), has only minor revenues compared to the future potential from the project pipeline, even with $20 million in revenue last year, and a 50% profit margin, that'd be a $10 million profit. At the numbers being thrown around, with a P/E ratio of 17-26, that would give a market cap of $170-260 million. With the estimated share structure of 61 million O/S, that'd be a PPS of $2.79 - $4.26.
My question is this:
Given the speculative nature of this merger, as well as estimated revenues in the above "valuation" to begin with, how long do you expect the future potential to drive the price much higher before it settles down around it's "true" valuation? I am in no way trying to downplay the stock, or any of the DD presented, but it seems that so much depends on future projects, and at some point, people will begin to trade it closer to its present value, and the price will only go up significantly as additional revenue streams are established.
AI
