Replies to post #38524 on Hannover House Inc (HHSE)

[speckulater]

TDGI: Average Industry P/E



For most of you that normally buy Pinksheet stocks the idea of Revenue & Earnings is a strange notion. Revenue & Earnings? What is this unheard of concept? Well TDGI has Revenue & Earnings and we are not going to apologize for it. Target Development Group is building their Business on a foundation of Revenue & Earnings, if you stay here for any length of time, get used to the idea.

Following up on ckbaby's PPS Valuation Potential Post, here are some Price To Earnings Ratio Industry Averages from Yahoo Finance. TDGI could fit in several categories:


Entertainment - Diversified - 34.2

Movie Production, Theaters - 31.7

Publishing - Books - 18.7

http://biz.yahoo.com/ic/ind_index.html

I gave Entertainment - Diversified a 60% Weighting of the TDGI Business, the other 2 categories at 20% each.

(34.2 x .60) + (31.7 x .20) + (18.7 x .20) =

20.52 + 6.34 + 3.74 = 30.6

Average P/E for TDGI = 30.6


Many investors will reduce the P/E for a Pinksheet Stock. However, before doing so for TDGI you need to consider 3 factors:

1.) No Dilution Policy
2.) Coming Uplisting to a Higher Stock Exchange.
3.) Forecasted 2010 Revenue & Earnings Growth of about 1,600%





TDGI