Replies to post #11228 on Aero Performance Products Inc (fka AERP)

[gapper415]

.0375 post merger??? lmaoooooooo

[TallRob0]

apparently revenues are much more that 10 million...40 mill or so.

[cruzdelsur]

LOL!! First, people were talking about the AS being increased to about 400 million. The OS might stay at 72 million or slighty higher, at 100 million shares after merger.

Second, the 10 million revenues is a joke. This company conservatively is at 25 million revenues.

And the profits are more likely 50%.
After tax income is about 7-8 million dollars.

So a $7 million / 72 million shares = 0.097

PE 15 X 0.097 = 1.45 a share

All is IMO

[weebie]

Then you should take profits at .04, I will wait

heheheh

[IPRE-Paramount]

PE,Net profit Margin,Growth %,Market Cap to Sales
Let's be accurate :
The PE of 15 is to be applied for standard stock with slow growth .
Look at these Nasdaq Goliath :

.1) CSCO,ORCL,MSFT and a smaller MSTR co in average:
P/E=25 , net profit margin = 20% , sales growth 15%-20% , Market Cap to Sales = 5 x

.2) If you consider APPLE AAPL : when sales growth pace around 50% .
P/E=40 , net profit margin = 10% !! , sales growth 50%, Market Cap to Sales = 20 x !!

SO to be fair a small company like AERO has a lot of growth and the model to apply here should be the second model like AAPL :
You have the choice to select the PE of 40 or Market Cap to sale of 20 ? or just consider the Market Cap to Sales of 5 from the model 1 ? Every data you consider above make FCCN much higher than .0375 a share.

I would rather consider a reasonable valuation based on : FCCN should be valued at 3 x the Sales .
So suppose 10M in sales give a Mkt cap of 30M : and you have .075 a share (30M/400 shares). And apply this multiple to the actual Annual sales

Cheers Buddies