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narnia1000

01/19/11 9:08 PM

#34264 RE: 2hars #34261

Repost.
If the company releases confirmation of 1.4 million ounces of gold, given that the price of gold is at least $1400 per ounce, this would warrant a total valuation for NWTT as indicated below…

1,400,000 ounces of gold x $1400 per ounce = $1,960,000,000 in Gold Valuation

This would mean that the $1,960,000,000 would be considered Revenues from the 1.4 million ounces of gold pulled from the ground.

I think it would be fair to consider a 75% Net Expense Margin which would leave a 25% Net Profit Margin to consider as Net Income to derive an Earnings Per Share (EPS). I use such an amount because I believe it to be conservative for our purpose of deriving an EPS. Anyone can use the Substitution Property to use different margins higher or lower if they like, but the formulas used below are consistent with basic accounting principles for deriving an EPS. This means that the amount to be derived for Net Income under this thought would be below…

.25 Net Profit Margin x $1,960,000,000 Revenues = Net Income
$490,000,000 = Net Income

Now we can derive an Earnings Per Share (EPS) for NWTT. Keep in mind that this is simply a speculative fundamental valuation from the information that we know of from us investors here doing our due diligence (DD) to see if our NWTT investment is as good as some of us believe. So far so good, but the valuation won’t be considered an "actual" valuation until the company releases numbers to justify what we believe and hope for. The formulas below are used to derive an EPS for now for us to consider…

Net Income ÷ Outstanding Shares (OS) = EPS

From the derivation above, we know what the Net Income is for our purposes within this post and below is confirmation that the OS is 4,757,459,479 shares:
http://www.otcmarkets.com/stock/NWTT/company-info

490,000,000 Net Income ÷ 4,757,459,479 OS shares = EPS
.102 = EPS

Now we must consider multiplying the EPS with a Price to Earnings (P/E) Ratio to determine where NWTT should fundamentally trade with knowing that a P/E ratio is a growth rate for the stocks that exist and trade within the same industry and sector as NWTT. Within the link below, we can clearly see that the P/E ratio for the Gold Industry is 30.60 for gold stocks:
http://biz.yahoo.com/p/1conameu.html

However, below, I will calculate a first conservative share price for NWTT from using 12 as a conservative P/E Ratio. Observe below…

12 P/E Ratio x .102 EPS = $1.22 per share valuation

This means that NWTT "could" very well fundamentally be worth and trade in the area of $1.22+ per share from the due diligence (DD) that is being speculated about if it turns out to be at least as expected by many who are pro NWTT.

Here’s something else that must be considered. I used the word "could" for some other reasons that must be considered. The valuation above is considering that NWTT "could" trade at $1.22 per share if NWTT would capture the 1.4 million ounces of gold in 1 year. I don’t know the plans for any of their drill programs as much more would need to be released from the company to confirm their per year goals for the amount of gold they plan on capturing. Below is a consideration from over a 1 to 10 year time frame to justify where NWTT should fundamentally trade if they confirm the 1.4 million ounces of gold based on the $1.22 share price derived from 12 as the P/E Ratio:

1 Year = ($1.22 ÷ 1) = $1.22 per share price
2 Years = ($1.22 ÷ 2) = $.61 per share price
3 Years = ($1.22 ÷ 3) = $.406 per share price
4 Years = ($1.22 ÷ 4) = $.305 per share price
5 Years = ($1.22 ÷ 5) = $.244 per share price
6 Years = ($1.22 ÷ 6) = $.203 per share price
7 Years = ($1.22 ÷ 7) = $.174 per share price
8 Years = ($1.22 ÷ 8) = $.152 per share price
9 Years = ($1.22 ÷ 9) = $.135 per share price
10 Years = ($1.22 ÷ 10) = $.122 per share price

So as you can see, even if it took NWTT 10 years to capture the valuation of the 1.4 million ounces of gold from the model above, it would be fundamentally worth .122 per share. If I had to guess, I would think that they would have a plan to capture the 1.4 million ounces of gold within a 4 to 6 year time frame.


megan1o

01/19/11 9:19 PM

#34267 RE: 2hars #34261

Yep,
You got that right.
NWTT management is on track. They know what there doing.

Tutu

01/19/11 9:38 PM

#34269 RE: 2hars #34261

i fill u on that i need to get some more of these cheap shares...................

*MARINE 1*

01/19/11 10:50 PM

#34278 RE: 2hars #34261

They wouldn't need reassurance if these crooks weren't vague and playing wordsmith games with shareholders, they wouldn't need reassurance if the obvious dump didn't come right after the inevitable pump, they wouldn't need reassurance if the IR didn't have a record for fleecing people on pinksheets and went legitimate, they wouldn't need reassurance if these IR crooks didn't pull the same trick on ever stock they pump.

What they needed was a MOMO, I reassure you.