Replies to post #593 on Meridian Company Ltd. (fka MRDAF)

[XV19]

that would be nice :) $5 would be better. lol.

[skunksyard]

I'm not good at price predictions Zig but my observation of this one is it moves quick in either direction like a low floater should

[nsomniyak]

I read the PR to say that HALF of that could come by Dec06.

Call it $14MM. In prior discussions with the company I was told "about $6MM for the year in revenue".

Assuming they get all of each and that the 14 is entirely incremental to the 6 (press release implies that this is a new channel, so let's work it that way) I get a best-case revenue of $20MM, or about .65 per share.

No clue as to whether that reveneue is profitable or what the margin would be, so I will look at price/sales instead of p/e. Current price about .55, that would be a p/s of about .8 or so--atrractive but not a screaming buy.

To get to 1.50 would be a p/s of 2.5 and 2.00 would be a p/s of 3. That is getting expensive--would clearly need to see both earnings and further revenue growth to justify a price like that.

IMHO 1.50 by year end would be a huge stretch based on what we know at this point in time.