Consumer Automotive Finance Inc (CAFI)

[snow]

Revenue numbers were better than the number of cars sold in June and July would suggest. It is impossible to know what profits were since there is no sharecount mentioned that the very different calculations of earnings per share are based on. Assuming a profit margin of 15%, which I think is the one projected in the past, earnings per share would seem to be about 3, assuming a sharecount of about 30 million.

If revenues are $ 6 million and the cars are sold at twice the price they were bought at gross profits would be $ 3 million. Assuming a tax charge of 33% after-tax profits would be $ 2 million or about 7 cents per share assuming a sharecount of 30 million. This is assuming no expenses at all apart from what the used cars cost!! This suggests to me that the numbers for earnings per share may be (far) too flattering.