Replies to post #16 on Asia Electrical Power International Group (fka AEP

[Superbee383]

I asked an Ihub poster, who I respect 1000%, what he thought about AEPW. He gave me permission to post what he found, and what he sent to me in a PM. I guess that this gem I found, isn't quite the gem I originally thought! I will keep an eye on it though, and see if it turns around with the new contracts, etc!

Thank you 53chevy for your evaluation :-)

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Based on the IBOX data and PRs, the stock appears to be severely over-valued at current prices, and they are having trouble with profitability.........

For 2007, revenues were $11.67M, while Q4 had a record increase, and drove $3.62M of total revenues (31% of 2007)
Net income was $961K for the year, a very respectable 8.2%, yet Q4 was only $51,700 K of that (5.4% of total net income for the year)

So while revenues were at a record high, profitability is dropping rapidly. Also, when you factor in one-time expenses, their Q4 performance was actually negative income........

Also, the pps ratios are way out of whack with DJIA averages (Dow Jones Industrial Average)

Stock valuations are considered against revenue/OS ratio or earnings/OS ratios. Typical rule of thumb for revenues is 3x revenues/OS, which for AEPW would only put the "expected" stock price @ $0.67

For eps, the current DJIA is 29x earnings, so you take that against the $961K and 52M OS, you come up with a target pps of only $0.54 per share..........and declining, if you annualize that Q4 performance.........