Replies to post #216211 on Sulja Bros. Building Supplies, Ltd (SLJB)

[sunnyjax]

I have a company and if we could make 15% profit I wouldn't be posting here. I don't know that industry, but I hope they make 15%.

Sunny

[uw86]

marionpolk: net profit is just that, net, aka net income, net earnings, bottom line etc.--PRE-tax income is the line on the income statement that is just that--so, you DON'T tax net earnings, ie. they have already been taxed--sljb's base biz did approx. 14 mm in revs last yr., @15% net = approx. 2.1 in net income x 15 multiple = a little over $30 million market value from base business-NOW add any cement deals etc., the one just announced w/40% tax rate will = about $4.7 million NET x 15 multiple=approx. $68 million in additional market value----so, when this cement deal is confirmed, watch the pps go back into the teens--and ANY incremental deals will have large leverage to PPS-and lafarge, new cfo in particular are all good---and thanks so much to hog, airys, and fish--and bring back Snips!

[DownWithPumpers]

$1 million (Canadian) sales per month is actually pretty good for a local lumber operation. A 15% net profit seems a little high, but might be possible.

Look here for an example: http://finance.yahoo.com/q/ks?s=HD

The Profit Margin is just what it sounds like, it's the number after taxes, expenses, etc. are subtracted. They refer to the pre-tax number as Operating Margin.

15% sounds ridiculously high, but that's another discussion.