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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies

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To: Bucky Katt who wrote (81461)7/2/1999 1:05:00 AM
From: Smart_Money  Read Replies (1) of 119973
 
Excellent post from Yahoo. Read and Enjoy.

"I used to work @ Walmart and as an assistant Manager. I recall that Magazine sales were really quite good. I remember books were sold on (discount) off of sugg, retail price. Sometimes as much as 60% off. Most cases 20% off to 30% off. I also inquired about Book and Magazine sales figures, and this may shock you. But Walmart did 465 Million $ in sales in the last Quarter, for books and magazines. Get this. Projections are that 20% of sales will be coming On Line. Walmarts last quarter book/mag sales were 438 million. So it's growing around 5-10% Quarter over Quarter, or around 28% /annum in sales of book/magz. Get this, if BAMM is exclusive supplier to Walmart for Online sales, BAMM can easily expect 70-75 Million in Quarterly sales from Walmart. However, to be very conservative, the first few quarters may be around 50 million or 10% of Walmart total store sales compared to Online.

BAMM's Total market cap value is only 252 million. One years business in revenues from WalMart deal will equal that.

Profits will be around 3-5%, which means around 10 million/year or 0.55 cents/share

If The scenario fits well, with a reasonable PE of 40, and its current earnings (without Walmart) 0.10-0.14/annum would give this puppy a fair vaule of around: 26.00$

We are trading @ 1/2 of fair value and really conservative #'s

Expectations of perfection and high end of the profit margins would give us an earnings scenario of 0.95-1.00, and a PE of 45 would give us a stock priced to perfection of around 42.00$

I think at 14 and under this stock IS A STRONG BUY!"

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