Replies to post #28702 on GSDT Fintech Group Inc. (GSDT)

[Topgun21]

Exactly. This thing will get to fair value !!!

I love those figures!!!

Tim

TEAM EVRM

[Lochan]

In the Sept. 11 PR, the Company said they would post strong
consolidated third quarter financial statements that would reflect the revenues of STS. IMHO, if these are audited financials, they should be out no later than mid-November. If not, they should be posted much sooner. I would expect them to be carefully determining the value of STS assets so as not to overstate them on the balance sheet.

I believe we could see a PR within a week to announce plans to expand under the new management structure, but that may just be wishful thinking on my part.

[Lochan]

Also, EVRM's stake in STS is 80% which means first of all that financials must be consolidated. It also means only 80% of the total value of STS will be our basis. There must be other assets besides the STS acquisition that will show up on the balance sheet of EVRM. I just don't have any idea what they might be.

[investor911]

duelittle2:

When we do the valuation, consider O/S and not the A/S. Guess what the O/S is 781M. Now use your math and let me know the
PPS:-)

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=42666542

What we are buying is an asset that is worth about $80-$100 million, based on STS' current and pro forma revenues, earnings growth rates, relative P/E and its ability to generate government contracts in the next three years.

Good Morning All!!!

G/L,
-911

[stervc]

duelittle2 (& ALL), with your EVRM valuation...

Heck, I think you just saved everyone from reading one of my 3 to 4 page posts (LOL)! I couldn’t help myself as I stayed back for a bit to respond to your post.

I understand your valuation and I do understand why you used the AS instead of the OS, but for assessing fundamental valuation, the OS is used and not the AS. Although I have used the AS when dealing with pink sheets stocks at times as a worst case scenario to compensate for any kind of dilution. So, I do understand why you are probably using the AS too. Here with EVRM, I think we are safe from any kind of dilution. Instead, they made sure to keep the OS tight the way they structured the STS deal which showed that they are cognizant of this important piece for growth.

With the OS though, here is the definition for those who may not be aware of such...

http://www.investopedia.com/terms/o/outstandingshares.asp


The EVRM PR below states that EVRM has acquired an $80-$100 million asset when they acquired STS. I think it’s fair to say this number would be in reference to the dollar amount(s) generated from “a” or “some” contracts. If they can file or release official news to substantiate this value, then consider below…

Let’s first take a 25% Net Profit Margin from the low side of those numbers mentioned of $80 million. This would equate to…

$80,000,000 x .25 = $20,000,000 in Net Profit

Now, since the OS is used to assess fundamental valuation and I think that it is safe to use the EVRM OS for our calculation, then consider below to derive an Earnings Per Share (EPS):

EPS = $20,000,000 ÷ 781,540,115 (OS)
EPS = .026

Now, to get where EVRM should be trading, you have to multiply that by a Price to Earnings (P/E) Ratio. I like using a conservative P/E Ratio of 12 and in doing so, observe where EVRM should be fundamentally trading right now just based on the ”potential” that has been publicly known…

12 Conservative P/E Ratio x .026 EPS = .312 per share current “potential” valuation

v/r
Sterling