SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : WINR-Secure Banking to Global Internet Gaming & E-Commerce
WINR 0.00010000.0%Nov 5 1:20 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dave Gore who wrote (5735)7/22/1999 3:16:00 PM
From: hman  Read Replies (2) of 6545
 
To All:

In trying to analyze WINR valuation based on future expected EPS, I am trying to reconcile the following:

1. Current operating margin of approximately 65% in Q2.
2. Skinner Jr expectation of double digit growth in EPS in Q3 & Q4
3. Skinner Jr expectation of 9-11.5 million in revenues for FY99.
4. Skinner Jr comfort level with .20 - .30 EPS for FY99.
4. 0 Debt (My assumption)
5. Expense Overhead growth due mainly to expansion of personnel.

While simplistic, I estimate that a conservative operating margin of 50% can be used if expansion of operations grow faster than revenues.

Let's assume that revenue estimates are accurate but estimate that 9 million is conservative.

Therefore $9 million times 50% operating margin is $4.5 million in earnings divided by 15 million shares is .30 per share pretax.

To be less conservative, $10.25 million in revenues times 55% operating margin divided by 15 million shares is .375 per share pretax.

Or to be a little reckless, $11.5 million in revenues times .60% operating margin divided by 15 million shares is .46 per share pretax.

Now, I have no idea what tax rates are and what tax jurisdictions apply to WINR, but it seems to be that even the conservative estimates after applying a 30% tax rate will yield us the .20 to .30 EPS for FY99.

I guess another question is that if revenue is estimated at 1.2 million for Q1 plus Q2. The revenue numbers will really have to jump to make the 9 million total revenues for the year. Can the current client list perform for 9 million in revenues. My guess is that we will see the addition of about 8 more clients before year-end.

Can anyone shed some light on the above?

Sincerely

hman
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News