Replies to post #112787 on Sulja Bros. Building Supplies, Ltd (SLJB)

[raguse8706]

Geez its not 800 million shares, its 500 million! Therefore it is .0317 eps. Plus up your valuation accordingly.

[FeverPitch]

You have to add in the SAM aquisition #'s,and did you add in the cement deal ?
and there is the unknown coming,more blockbuster deals ?

man this is such a GEM !!!!!!!


jmho

[toddeholden]

jerseyboy:

I've been playing with valuations, too. I think the Discounted Cash Flow model is more appropriate than using an industry multiplier. The DCF more accurately represents the value of a stock as if it were an annuity, which essentially is what we expect an investment to be.

I like this on-line calculator. I've posted the link before:

http://www.zroundtable.com/ZRT_files/Finance/scripts/calc_stock_earnings.htm

I used the following numbers:

.12 for current stock price
.032 earnings per share
Earnings growth years 1-3: 133% (an average of next year's anticipated 400% increase over 2006, spread over 3 years)
years 4-6, 20% (probably very conservative)
years 7-10 10% (also probably very conservative)
15% discount rate

That calculator yields $6.41 as the value of the stock today, if all of our guesstimations are correct. That assumes audited financials and NO short covering.

Here is one that is more basic but even more conservative:

http://www.moneychimp.com/articles/valuation/dcf.htm

I used .032 as EPS, changed growth rate to 368% for the first year (as per PR), and 10% growth per year after that, and a 15% discount rate to get a value of $2.81.

Either way, price and value will converge someday very soon, imho

glty
t