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Re: koldkash post# 3444

Wednesday, 06/26/2013 10:31:37 AM

Wednesday, June 26, 2013 10:31:37 AM

Post# of 18488
Koldkash, with your NXHZ Valuation…

The .15 Earnings Per Share (EPS) for NXHZ that you mentioned for being derived as the latest EPS for NXHZ sounds like a fair assessment. If they secure the acquisition from shares already existing as like how the CEO already mentioned, then this means that a .15 EPS is derived on the presumption that the OS was maxed out to its Authorized Shares (AS) amount of 250 Million shares as a worst case scenario (although confident that it won’t happen here) and also presuming that out of the $100 Million in ”uranium” reserves, only 37.5% will be immediately captured resulting in $37,500,000 for a Net Income amount to get the .15 EPS that you mentioned as indicated below...

$37,500,000 ÷ 250,000,000 (Maxed OS) = .15 EPS

If they partner with a major company as like has been mentioned, then I would give the life of the Gold Eagle Mine a 5 year life span to capture the reserves. This means that I would take that .15 EPS and divide it by 5 years to equate to basically an EPS of .03 per share.

Here’s where it can get a little tricky because now to derive the fundamental share price of where NXHZ should trade from the closure of this huge ”uranium” deal, we must multiply the EPS by a Price to Earnings (P/E) Ratio. There are a few different ways to logically derive what P/E Ratio to use, but I like to use what’s ”officially” indicated within the Yahoo Finance database for the ”Industry” of which a stock would trade. NXHZ has a $100 Million deal for ”uranium” confirmed by the Department of Energy (DOE) as indicated within the link below:
http://www.nexhorizoninfo.com/#

The P/E Ratio is the growth rate for stocks/companies within a sector or industry that are generating revenues/Income/profits. These companies are used as the standard for other companies to be measured upon to determine the rate of its growth. With the indicated P/E Ratio below from Yahoo Finance… it is what it is. It is not speculative or something that I made up. It is confirmed from an official database of registered stocks that trades within that Industry/Sector. I think it is important to read the link/post below to understand the different concepts for interpreting a P/E Ratio before reading any further:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170

With a ”uranium” deal of this magnitude, NXHZ would trade within the Industry called Industrial Metals & Minerals within the Sector called Basic Materials as with the likes of companies such as Cameco, Rio Tinto, BHP Billiton, Vale, and many others:
http://biz.yahoo.com/p/133mktd.html

The Industrial Metals & Minerals Industry has a 73.40 P/E Ratio. This means that 73.40 is the Growth Rate to be used as the multiple with the EPS of .03 per share to determine where NXHZ should fundamentally trade upon securing this ”uranium” deal as indicated:

73.40 P/E Ratio x .03 EPS = $2.20 Share Price

For those reading this post, please understand that this post is not what will dictate if NXHZ will actually trade at the above derived valuation of $2.20 per share. The company’s actions will dictate such. If a year goes by and we are still here waiting on the news, then please understand that it is everyone’s own responsibility to trade accordingly. I can’t control when and what news will be released.

However, if the news of the $100 Million acquisition confirmed by the DOE is released as soon as some of us have been expecting, then the above thoughts could be used as a framework to possibly get an idea of where NXHZ should be fundamentally trading. If they capture much more than the 37.5% of the $100 million uranium reserves that was used to derive this valuation, then use the substitution property to make the necessary adjustments. Personally, I love the ”risk versus rewards” existing here with NXHZ, but at the very least, I think NXHZ is worthy of being kept on watch by all as the CEO has mentioned that they are in the process of providing audited financials through filing a Super 10K, specifically, a combined filing of annual reports for calendar years 2010, 2011, 2012, and portions of year 2013 as PRed below:
http://ih.advfn.com/p.php?pid=nmona&article=57228023&symbol=NXHZ

The Uranium News can be read below for those who have not seen it yet:
http://www.otcmarkets.com/stock/NXHZ/news

v/r
Sterling