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stock_god2121

04/25/07 2:19 PM

#235619 RE: Market Dragon #235585

From my extensive experience, one must make an analysis based on a few key elements which seem to be missing from BKMP

One of the most effective ways to simplify the evaluation process and better justify potential is by using Return on Investment (ROI) calculations, which help provide financial relevance.

Note: A true business evaluation system includes:

Trend analysis

Historical and forecast ratio analysis

Re-casting of financials to reflect adjustments for non-recurring expenses

Objective estimated five year forecasts based on historical data and qualitative information

Calculation of historical and projected Operating Free Cash Flow

Determination of company’s sustainable growth rate

Analysis of risk factors, including those associated with the level of diversification

Calculation of company’s weighted average cost of capital

Estimates of value utilizing a market comparable approach, a discounted cash flow approach, and a capitalized earnings approach.

And one very important element missing is a Revenue Stream