Replies to post #2000 on Salon City Inc. (SALN)

[dustin1101]

Thanks for those figures. Good to see someone is thinking about this stuff... Not sure a magazine deserves a P/E of 20 but even with 10 this is undervalued.. and the fact that the majority of the billion shares is not in the float will make it a lot easier for this to move upward.

[StockSniper00]

Nice figures except SLON will charge 1/10 of how many magazines they put out per issue so if they put out 200K, each ad will cost $20K. So double that $450K total to $900K. If slon can get to the levels of Vogue then they will be producing 1 million adds per month, 12 issues per year. $4.5 million per issue in ads and $54 million in ads per year.

This doesnt even account for the new professional publication they will have out soon or the revenue generating website.

Adjusting that figure for the ads this is what I got for new estimates.


200K magazines per issue X 10 issues = 2M mags sold in one year.
2M mags x $3.99 (cost to buy a mag) = $7.98M

45 ads X $20K (cost to place an ad) = $900K in ad revenue per issue.
$900Kx 10 issues = $9M annual ad revenue

EARNINGS:

$8M yearly revenue for selling the magazines
$9M revenue for the ads

minus $2M for printing the mags
minus $500,000 for operating expenses

+ 17M yearly earnings

FORWARD P/E:

The projected yearly earnings is $10M and with approx. 1B shares, that comes to .017 per share.

With a P/E ratio of 20 the PPS would be .34

[gambler2706]

I think you're figures are overly opimistic. The revenue from selling will be about zero after the highly discounted fees and distribution costs.

The money from ads, yes.