Bill, I've done some digging on my own and have come up with some interesting news.
I certainly hope you have picked up stock at the current level as the recent price levels will apparently be gone when this stock starts trading Monday. I picked up 5000 shares on Thursday on advice from a contact I have.
Apparently a deal will be announced and I bought on that "rumor". The pre-market Friday morning just before the stock was halted was 50,000 shares bid for at $1.89 (closing price on Thursday was $1.49).
I've got a few numbers that I'll give to you for your information. The original projections for 1996 was gross rev. of 6-8mm. this has since been revised to 8-10mm and I'm hearing that this may again be revised. Net revenue is projected at 1mm (this perhaps will be revised as well). I've been told the product is selling VERY well. Projected revenue for 1997 was orig expected to come in at about 8-10mm and this has been revised upwards to 10-12mm and another possible upward revision apparently will occur. Net income was originally expected to be approximately 2mm. The are all U.S. figures are the corp. is based in California.
Currently there are 8-9 million shares outstanding and this will almost double on the pending announcement. EPS are expected to be about .06-.08 this year (U.S.) and next year around .09-.11. From ckecking companies in this industry P.E. ratios are between 20 -40 times. Let's use a 25 P.E. ratio and times this by current years earnings, say 8 cents, that gives us a value of $2.00 U.S. or $2.75 CDN. So watch out when news spreads that the deal has been reached!
From sreaking with a gentleman named Steve Bajic, connected with the corp. , there is a large interest in this company by U.S. investors, both individual and mutual fund, who have been awaiting a deal to reached between the public corp. and the private individuals who still own 50% of the orig Carbite. In his words" these people are not interested in owning share of a company that owns shares in a company". They want the public corp. to own all of Carbite Golf. This is apparently the deal that will be announced.
Bajic also tells me to expect to see this company on a U.S. exchange in early 1997, my quess is Nasdaq.
Bill, also a higher share price may result should this company trade on next years expected earning as many companies do or if a higher P.E. is used. As well, if the revenue and net income figures are further revised this if bonus for shareholders.
If I come up with any additional info I will post it, and should you have any additional news on XVN ( and I pray its good) or on this corp. please post.
stevee, |
