InvestorsHub Logo
Followers 70
Posts 2693
Boards Moderated 0
Alias Born 05/11/2010

Re: MASTERTRADER post# 170274

Monday, 01/09/2012 10:38:32 AM

Monday, January 09, 2012 10:38:32 AM

Post# of 649137
Damn, great DD there, really nice compilation.

MASTERTRADER Share Monday, January 09, 2012 3:12:47 AM
Re: None Post # of 10460

SAPX MASTERTRADER'S DD AND REASONS WHY SAPX IS GROSSLY UNDERVALUED AND WHY ZACKS THINKS JUSTIFEID $4 DOLLAR PPS...


Firstly let's talk about the restructuring of debt. SAPX was restructured recently to reduce the total outstanding debt, they have reduced the debt this past year by 25% and has brought the companies operating cost down 30% *this can be found here on nasdaq http://www.nasdaq.com/symbol/sapx/financials?query=balance-sheet
There was open market dilution but I don't see as an issue, I see an opportunity to make big money.

From the latest filings the O/S is a little over 15 million which compared to most nasdaq stocks is very low...

http://www.nasdaq.com/aspx/company-news-story.aspx?storyid=201111221000mrktwireuspr____0824675&title=seven-arts-entertainment-announces-results-of-operations-for-the-quarter-ended-september-30-2011

Ok neatly we have a $4 DOLLAR ZACKS target for SAPX, ZACKS is a well reputable firm and their price objective should be taken seriously....

https://docs.google.com/a/shatsholdings.com/viewer?a=v&pid=explorer&chrome=true&srcid=0BwI9WYgqHk9mNGNiNzhkZjMtOTNjOC00NWE3LWJiZWYtN2M0NzhkNTlkNzk3&hl=en_US&pli=1

http://finance.yahoo.com/news/Seven-Arts-Entertainment-iw-1955430967.html?x=0
Now let me show you what ZACKS sees....

****************************************************************

~~DMX~~

Past DMX albums have soared and became double platinum, yes he's been out of the loop bc of his jail sentence, but we all know bad publicity is good publicity in the rap world...

But we don't care about that, we want to see the money
DMX's past album pulled $35MILLION...

http://seekingalpha.com/news-article/2068245-seven-arts-announces-letter-of-intent-to-acquire-music-assets-including-two-unreleased-albums-by-multi-platinum-recording-artist-dmx

Now keep in mind as soon as the acquisition closes we'll have the full rights to TWO OF THEM (Albums)

So the next issue is DMX still current, after his performance last night I'ld say he still has the gift..

http://www.ballerstatus.com/2012/01/06/crazed-fan-attacks-dmx-on-stage-in-long-beach-performance-doesnt-miss-a-beat-video/

So what would $70 million in revenues mean for SAPX? well let's find out:

With 1x P/E multiplier
70/15= $4.667 dollar PPS
WOWZA..................................

Next, lets hit some films:

*************************************************************
Let's start with "The Winter Queen"...

http://issuu.com/rfilms/docs/co-guide

If everyone will refer to page 24 with me, we can see that there is a major actress on board and the financing is complete for $35million (Budget)..

The actress starring is Milla Jovovich
who starred in several similar roles like the "5th Element" and "Splice"

Let's see what kind of revenues her films bring:

Her most recent movie "Resident Evil" had a $60 mil budget and pulled around 300 million at box offices
http://www.imdb.com/title/tt1220634/

So we can use the same formula *roughly 5 times cost* to determine the revenue we'll produce with "The Winter Queen:

$35million X 5= $175million

now let's see what SAPX valuates just on the above mentioned movie alone...

175/15= $11.66 dollars PPS with 1 P/E ratio

WOW WOW WOW...........

*************************************************************

NOW FOR THE BIG DADDY
NEUROMANCER:

Budget $60million

Leading Role* Bruce Willis (?????) (heck, even if it's not him, I can allways replace him, lmaoo)

K, let's look at past revenues from Bruce's movies:
By looking at "Pulp Fiction":

Budget - $40 million
Revenues - $600 million

But let's NOT assume our Neucromancer, which is a very popular book with a cult following like "Harry Potter" gets that big, assume it makes 5 X on revenues so let's say $300 million which is fair:

Again with no P/E ratio of just 1
300/15= $20 Dollars PPS...

WAIT A MINUTE ZACKS LOWBALLED US LOL

--------------------------------------------------------
--------------------------------------------------------

~~~FUTURE REVENUES~~~

DMX $70 MILLION
WINTER QUEEN $175 MILLION
NEUROMANCER $300 MILLION

IN TOTAL 525 MILLION IN POTENTIAL REVENUES NOT COUNTING THE REAL POSSIBILITY OF A NEUROMANCER VIDEO GAME, AND ROYALTIES OF MERCHANDISING RIGHTS AND POTENTIAL SEQUALS.

$525MILLION DOLLARS AT OUR MEAGER 15MILLION OS....

B O T T O M L I N E......

************************************************************
525/15 = $35 DOLLARS PRICE PER SHARE VALUE WITH A P/E RATIO of 1(ONE)...
************************************************************

Lions Gate (LGF) right now trades with a 41 P/E ratio
DreamWorks Animation SKG Inc (DWA) trades at 10.4 P/E
Cinemark (CNK) with a 13.86 P/E


Reasons why right now is the time to buy SAPX...

Well, besides all the excellent DD even management is buying SAPX right now, why not make big $$$ like the investors??????

Point being SAPX is poised for possible one of the most EPIC moves in Nasdaq history.

Above post is IMHO only.

P.S.: Oh BTW... Did I mention SAPX going to $5+ soon? LMAO.....

P.P.S: You're allways wellcome to divide above $35 PPS projection to say 10?????????? hahahahaha, If your calculator is in working condition it should show THREE DOLLARS FIFTY CENTS (at least,lol) HUH?????

Thoughts are wellcome, NO NONSENSE please....



We all have a duty to be bold, to be brave, to strive to live our best life...and to help others along the way do the same!

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.