Replies to post #27425 on SoOum Corp. (fka SOUM)

[Alexw592]

Please sticky

[360spyder1]

and may contain privileged information.... why would Westbrook give out privy info? that would be illegal & i doubt he's stupid enough to do that..... lol

nonetheless, interested to hear the interview...... ya did good last time kid.... ;)

[TIWARIG]

I am liking what I am reading. SWRF....our time is nearing.

[vini77]

Great DD Dok, thanks for the info.

I'm just hoping we get some contract PR this week or next week to get this baby going.

[LivinLarge8]

Great post Dok!

[stervc]

TheStockDok, with your SWRF DD post...

Your SWRF DD is much appreciated along with any further DD that you will provide. I will try to help by proving a valuation format to consider for where SWRF should fundamentally trade based on their already achieved revenue goals and if they achieve their goals that are in the queue.

The valuation of a stock is derived by the use of its Outstanding Shares (OS) as the denominator and not the Float. I think I understand the logic that you are delivering to reflect how undervalued SWRF is at these levels and I agree. I will use a format that is basically a market norm, but this post will not be what gets SWRF to those levels. Those levels will be based upon SWRF achieving their goals of revenues for growth with the expected Net Profit Margin that I will use as baseline.

Give me a moment because I have to get back to my grand kids, but I will make time to create this post. I hope it helps as it should be used only as a framework to derive a fundamental valuation for SWRF. Use the Substitution Property with the given variables within the post to help to use as a framework if any of the variables should change.

v/r
Sterling

[stervc]

SWRF .018 Fundamental Valuation to Consider…

Before reading any further, please understand that this SWRF fundamental valuation is something to only consider where SWRF could trade if they achieve their goals of revenues to a level that can be publicly confirmed by the market. Even still, achieving such share price levels will still be based upon the market acknowledging such growth. That could happen immediately or months down the road. Nobody truly knows the time or if such will ever be acknowledged by the market. I think it’s key to note that SWRF has ”officially” completed the merger/acquisition of SOOUM as confirmed from the SEC filings/links below:
http://www.sec.gov/Archives/edgar/data/78311/000109181814000273/0001091818-14-000273-index.htm
http://www.sec.gov/Archives/edgar/data/78311/000109181814000273/swrf110720148k.htm

http://www.SOOUM.com/
http://www.swordfishfinancial.com/




Courtesy of TheStockDok, within the post below, SWRF is explained to currently expect to be generating $18,000,000 Annually (at this time) derived from their current $12M that is being generated and a current known $6M contract that exists:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108341404

Based on what I have learned from its business plan in being more ”service” oriented, I think it is fair to consider a 25% Net Profit Margin from its operations. The Outstanding Shares (OS) is the key fundamental denominator that is used to assess the fundamental valuation of a company to help derive the Earnings Per Share (EPS). This is important because we must multiply the Net Profit Margin by the revenues to get the actual Net Profit/Income. Then we must dived the Net Profit by the OS to get the Earnings Per Share (EPS) as done from the formula below:
(For inquiring minds, Net Profit is synonymous with Net Income.)

Earnings Per Share (EPS) = Net Profit ÷ Outstanding Shares (OS)



I will consider the OS to be the maxed amount of the current Authorized Shares (AS) which is 5 Billion shares. Once the EPS is learned, then to determine where a stock should fundamentally trade, you must then multiply the stock’s EPS with the Price to Earnings (P/E) Ratio as such:

Fundamental Share Price of Existence = EPS x P/E Ratio



For those who are not familiar with the ratio, the P/E Ratio is basically the ”Growth Rate” for a group of similar stocks within a particular Sector or Industry for where a stock would be classified to exist/trade. As that stock exists within that particular Sector or Industry, it is expected to grow at the same rate as such like stocks within that Sector or Industry. For those new for understanding what a P/E Ratio is, read the links below that hopefully will help:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

Currently, there is no official P/E Ratio for the Commodities Market, but as one would learn by researching the growth rate of the Commodities Market, I think it is fair to consider the use of 20 as a fair and conservative P/E Ratio here with SWRF for a few reasons. To better understand why I think so, I think it is first good to make sure to understand just what all the Commodities Market captures with its diversity for positioning SWRF for growth by understanding some basics about what all the Commodities Market entails as indicated below:

http://en.wikipedia.org/wiki/Commodity
In contrast, one of the characteristics of a commodity good is that its price is determined as a function of its market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Generally, these are basic resources and agricultural products such as iron ore, crude oil, coal, salt, sugar, tea, coffee beans, soybeans, aluminum, copper, rice, wheat, gold, silver, palladium, and platinum. Soft commodities are goods that are grown, while hard commodities are ones that are extracted through mining.

There is another important class of energy commodities which includes electricity, gas, coal and oil. Electricity has the particular characteristic that it is usually uneconomical to store; hence, electricity must be consumed as soon as it is produced. …

Industries exist within the Sectors. So given the vast variety of Sectors and Industries for where SWRF could deal with to generate revenues through its business model, it is fair to consider an average P/E Ratio from a variety Sectors and not just one. If you look through all of the Sectors within the link below, you will see that every single Sector has a P/E Ratio ranging from 22.71 to 58.93 as of 21-Nov-2014:

http://biz.yahoo.com/p/s_conameu.html

As you can see, 22.71 is the lowest P/E Ratio within all of the existing Sectors which could logically justify the use of 20 as a fair P/E Ratio for this SWRF fundamental assessment. For inquiring minds, I’m spending so much time on this topic because it is very important to derive where SWRF should fundamentally trade given its current and future potential.



Now let’s organize the key variables involved to determine the fundamental valuation:

SWRF Key Fundamental Variables
** Revenues = $18,000,000 Annually
** Net Profit Margin = 25%
** OS = 5,000,000,000 shares
** P/E Ratio = 20

Now consider…

$18,000,000 Revenues x .25 Net Profit Margin = $4,500,000 Net Income/Profit



Now let’s put them into the formulas I indicated above to derive a fundamental valuation:

Earnings Per Share (EPS) = Net Profit ÷ Outstanding Shares (OS)

EPS = $4,500,000 Net Income ÷ 5,000,000,000 (OS)
EPS = .0009 Per Share

So…

Fundamental Share Price of Existence = EPS x P/E Ratio

Fundamental Share Price of Existence = .0009 EPS x 20 P/E Ratio
Fundamental Share Price of Existence = .018 Per Share

This means that given the current known SWRF variables above, SWRF could be logically justified to be existing to trade within the .018 per share area. Please understand, this post is not the gospel. So, if SWRF doesn’t get to such levels right away… it’s not the end of the world. SWRF and its new operations is still new to the market and will likely take time to absorb any of this new known appreciation of value within the company. Besides, it’s up to the market for such to happen and not this post. Also, please know that any of the above ”Key Fundamental Variables” above could change at any given time. Please use the ”Substitution Property” accordingly to make the necessary adjustments to consider based on each variable that changes. Use this post only as a framework to use to help where SWRF could fundamentally trade if certain variables are confirmed by the market. I hope this helps.



For those that are very new to SWRF, if you go to the SWRF website, this is what you will get below as you have to click on the word SOOUM in the left corner to be directed to the SOOUM website:

http://www.swordfishfinancial.com/


v/r
Sterling

[LivinLarge8]

@TheStockDok: Guess who is beginning international trade of #HEMP Fiber by MT! ;) A fresh .0004 #MJ play here $$$$ $SWRF THAT'S WHO! #ALERT @WolfOfWeedST

https://twitter.com/thestockdok/status/545485652775563264

[Ronin_Trader]

Nice work.

[Kool Aid Man]

Do you officially retract this?

It still appears as a stickey. If your opinion has changed, and you no longer believe the conclusions you drew, you might consider requesting the post to be taken down:

"MUST READ POST - DETAILED UPDATE"
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108341404