Replies to post #28553 on Value Microcaps Motherboard

[stanu78]

Wade.. SUWN.. there will be about 16M shares added with the warrants in the next couple months… that will reduce your EPS for 2006 by about 30%.. but at the same time they will get about $1M-$2M+ cash if the 15M warrants are exercised…

I’m hopeful for SUWN but forget about the short term.. short term will be sucks for this company.. too many institution wants to sell.. and I can’t figure out why.. maybe the whole thing is just a fraud… we’ll find out in the next couple quarters…

Retained earning is $4M+ which is encouraging knowing that they have been producer of cash and not churning cash

Stan
PS: my estimate 0.04 diluted EPS for 2006.. at PE of 5, it is not bad at all..

[Bobwins]

I think Suwn will need to show some sales increases and eps increases before they get a high p/e. I would think 8-10 is on the high side for now. If new US distribution agreement and GMP manufacturing in China gives them a high growth ratio with profits, p/e could get above 10.

They have an awful lot of shares to get rid of. 29 million is going to take a while to digest even if results are good.

Bobwins

[abh3vt]

Wade, re SUWN. The actual guidance given by the CEO contains some wiggle room:

""In summary, our organic growth should allow us to achieve annual revenues of $25 to $30 million and earnings in a range of $0.06 to $0.08 per share in the next 12 to 24 months. "

I've read the PR over and over but still can't figure out the exact guidance. Does he mean 25-30MM in FY06? or FY07? My guess is that it is further out than this current FY, because they would have to average 7.3MM in rev per quarter to achieve that. New production came on line in September, but that means they only had about a month or so in Q2 to take advantage of that.

They did 12.1MM in revs for FY05. Q1 revs were down slightly from last year because of production issues. Q2 will begin to show some improved results but we probably won't see bigger topline growth until Q3.