Replies to post #6088 on Double Crown Resources Inc. (fka DDCC)

[greendolphin11]

richbob, there IS no negative news...

Unless someone wants to gripe about the 10-Q due to be released at the end of the week

The story is not about the lack of past revenue

The story is now about MASSIVE future revenue, the kind that will eat up this company's tax loss carryforwards in less than 2 years, perhaps even sooner

By then it won't matter, because this stock could well be north of a dollar and primed for a major listing

You only need to do the math from their previous press releases

I seem to recall the numbers $200 million, and also $80 million

Let's assume the worst case scenario, that those numbers represent 5-year contracts

That is $56 million per year for the next 5 years

Their business model is going to produce at least a 35% margin

So we assume $20 million profit per year

In that scenario the $15 million in TLCF's are eaten up in the FIRST YEAR

So they clear $18-$19 million profit, which is about 6 cents per share in earnings

Using a typical 10x junior multiplier, that would suggest 60 cents per share on the price

But you have to consider the growth as well as the P/E, not to mention the potential for eventual overvaluation

This would indicate the potential for $1+ by end of 2014

These guys are the real deal, and I intend to keep some shares in the hole for that eventuality

Cheers!!

GD11