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moon2mkt

01/09/07 7:18 PM

#11404 RE: IPRE-Paramount #11398

IPRE -- agree with your analysis.
I was just pointing out to W00 that in using P/E
to calculate one cannot use revenues but must
use earnings. That's all.

By no means am i predicting .0375 for shr price
post merger. it was to show how he should calculate
the shr price using his rev numbers of 10M.

since we don't know their earnings info and
also since this will be early stages of being a
public company, it would be better to use
a price-to-sales ratio to compute valuation.
i agree with you on this.

if you use P/S (price-to-sales) of 5 as per your
numbers, and use a sales (rev #) of 80M then
the P/S calculation will give [5X80M]/400M = 1.0 for shr price.

that would be right calculation.

So it all depends on the rev numbers.
and the momentum factors once the merger is complete
and information trickles out.

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All my opinions only. Please do your own DD.