BRVO valuation before the call. Strong Buy.
Here we go again:
a revised summary of my stock valuations work, using my Lo and Hi (and the average thereof) 2007 Revenue projections:
Valuation using the price-to-sales ratio basis: I use a P/S ration of 3.0. The hottest beverage stock HANS (ok its an energy beverage, so not strictly comparable) has a P/S of 7
copied post.
2007 preliminary calc. was a value of $1.08.
How? 108mill x3 = 324mill Divided by 300 mill shares = my value based on 2007 projected sales is $1.08
2007; secondary calculations (Jan 17 2006)
The Lo: 85mill x3 =255mill divided by 300 mill shares = $.85
The Hi: 170mill x3 =510 mill divided by 300 mill shares = $1.70
The average: the average between my revenue hi and lo estimates is 85+170=255mill divided by 2= 127 mill. X3= 381mill divided by 300 mill shares = my value based on 2007 projected sales is $1.27
Summary: whether one uses PER, or P/S as a valuation basis, one is future gazing - which is about as useful as just guessing. So, my guess is, based on a P/S valuation approach, that the market should value the stock at somewhere in the range of $1 - $1.50.
