Replies to post #18714 on Bowmo Inc (BOMO)

[The Rainmaker]

We hit .008 this Summer in anticipation of a deal....same float now. Seems like we should go higher than that with a finalized merger.

[stervc]

realsmoka5 (& All), some UHLN valuation considerations...

Respectfully, although I am not Rainmaker and you did not ask me, forgive me for feeling necessary to share some valuation considerations regarding UHLN. There are some few variables that we will have to take into consideration.

** First, the key denominator for assessing the Fundamental Valuation of a stock is the stock's Outstanding Shares (OS). Based on what Rainmaker recently confirmed in the post below, the OS for UHLN is still unchanged and remains at 345,450,166 shares with a Float of 296,012,513 shares:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=135390194

** If they were smart, they would do any acquisition or merger deal through the dissemination of Preferred Shares instead of using common shares from the OS; even if they must create a special class of preferred shares. This will keep the OS from increasing because the larger the OS gets, the more diluted the valuation would be for the company. I’ll better explain this below…

The formula below is what is used to derive the Earnings Per Share (EPS):

Net Income ÷ OS = EPS

The OS is what allows you to derive an EPS. Let’s presume that the company that is coming into UHLN has Net Income of $500,000. That would warrant the EPS below considering the current OS for UHLN:

$500,000 Net Income ÷ 345,450,166 Shares = .0014 EPS

Now you must multiply the EPS by a Price to Earnings (P/E) Ratio to determine where UHLN could fundamentally trade. I think 15 is a fair and conservative P/E Ratio to consider, but with what’s confirmed below for the Restaurant Industry, the P/E Ratio is as high as 2725.10 which was derived from measuring the growth rate from 86 different companies within the Restaurant Industry:

http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

The newly acquired company would need to be very well established to be considered as advanced in its growth as those 86 companies that were considered that justified that 2725.10 P/E Ratio. This means that UHLN, if they acquire a solid company within the Restaurant Industry, could fundamentally trade with the range warranting a share price somewhere between the 15 to 2725.10 P/E Ratio ranges. I will show the share price ranges below:

.0014 EPS x 15 P/E Ratio = .021

.0014 EPS x 2725.10 P/E Ratio = $3.80+

This means that if UHLN acquires a company within the Restaurant Industry, and it is generating $500,000 Net Income… then it will be worth trading somewhere within the .021 to $3.80+ per share price range. Personally, I think a .02+ to .10+ per share valuation would be a fair consideration. Still, it would greatly depend upon the acquired/merged company that would be coming into UHLN.

Much more details would need to be announced to determine if any variables need to be changed or reconsidered. One consideration would be that for every $500,000 Net Income increment that would exist, such above thoughts would need to be multiplied by such increase. Only use this post a model to maybe help to be able to assess a fundamental valuation upon details of their Definitive Agreement being announced as what was insinuated to be coming per the company's tweet below:

CORRECTION * Acquisition NEWS on the horizon $UHLN# Definitive

— US Highland Inc. (@USHighlandInc) October 4, 2017

v/r
Sterling