Replies to post #127102 on Digital Brand Media and Marketing Group Inc (DBMM)

[Backstabbed]

I would take anything over $0.0025

But depends on what is coming!

[Stock_Barber]

NO! Not at all realistic!

Calculating an actual buyout price vs. just making one up

On the other end of the spectrum are service companies that are essentially ‘body shops.’ These companies can only grow as fast as new employees can become productive. Typical examples are web design firms, management consultants and human resource companies. These types of companies are often valued at PSRs of 0.5 or P/E multiples as low as two or three. This is also partly because the revenue predictability of these types of companies is low and because they usually have small percentages of recurring revenue.

Calculation using the PSR (since they have no "earnings"):

"P" is about $300,000 and the "S" is $43,000. That puts the PSR at 7 now!

So DBMM is already trading at 14x its potential buyout price ($21.4k)! And this doesn't account for debt or Asher!

Could this have something to do with why they can't raise $60k? Ya think?