Bravada International Ltd (BRAV)

[thatguy157]

There was much banter going back and forth yesterday about valuations. I place much emphasis on the fact that this is a low-level pinksheet stock (yield sign tells me that). When people start talking about multiples of revenue for valuing this company in 8s or higher, I just can't see it.

I'm still under the impression that retail is valued based on earnings and not revenue.

I would value this stock, currently, at around $.015 based on a multiple of earnings (15) discounted for substantial pinksheet risk. How did I come up with 15? I took the EPS for LULU (as this seems to be similar to many here) and halved it.

So by a valuation standpoint your major metric used is because the Stock is not "current" (low level yield sign that told you). If the growth rate for Bravada is double that of Lulu in revenue, current earnings growth even higher, and the company goes "current" (as stated yesterday in PR and yield sign removed), Does that essentially double your valuation because of a letter written by an attorney? I am trying to find the fundamental value of the discussion of an attorney letter.

GLTA
GO BRAV