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Microcap & Penny Stocks : UDW - US Dataworks, Inc. Turnaround Play Under $1.00
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From: Thomas Kirwin9/27/2010 7:42:29 PM
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Napkin Math - 2011 EPS and Beyond
    
1) 2011 total goal of transactions under management is double the 1.5 Billion already under management or 3 Billion.

2) 2014 total goal of transactions under management is 30 Billion

3) EPS for next year is predicted to be $0.06 to $0.08 - an average of $0.07 eps.

Given the above assumptions/guesstimates if 3 Billion transactions will produce an average of $0.07 eps then the projected 2014 goal of 30 Billion transactions under management which is ten times (10x) the 2011 projection then the eps could grow to an average of $0.70 eps (10 x $0.07). WOW!

Taking this model forward the stock price would be:

PE x EPS = Stock Price
20 x $0.70 = $14.00

Note: 20 PE assigned for high growth rate. Many of the assumptions may be faulty and fail to play out.

Please check my math and feel free to make any comments or add viewpoints. Use caution regarding my assumptions as the simplistic ratio formula does not take into account sales cycle dips, economic environment impacts, competition or lack of commitment by prospects to make a change or investment in a new system.

Disclaimer: Each investor is encouraged to perform their own due-diligence and not use my analysis as a basis for making an investment in UDWK.
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