Carbite Golf Inc. Vancouver-CAB Message Board

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Gold/Mining/Energy : Carbite Golf Inc. Vancouver-CAB

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To: Tara Cobble who wrote (12)	6/21/1996 5:47:00 AM
From: Codfish	of 209

Thanks for the thoughts Tara, That analysis seems logical. I spoke to my broker yesterday regarding p/e ratios. He admitted it is a tough one. Because the product is so specialized, it is difficult to get a feel for a reasonable multiplier. He suggested anything from 0 to a high number....my discussions with Corporation X indicated that a PE of 20 - 40. That lines up with your estimates. My Broker suggested that a sales multiple may be a reasonable method until a more reliable P/E can be settled. H suggested a sales multiple of 2 - 3. Now don't forget......the sales figures are $US. So $12mm over 18mm shares is ±$0.65/share. At 2.5 times, this results in ±$1.60 US or ± $2 Cdn. Well above the current level. I understand that sales are in the neighbourhood of $5mm US for the first 5 months /96. At $1mm/month we can all do the math. But I further understand that the company always does higher sales in the second half of the year. So....sales of $12-15mm US?? for 96? Profit is the real question but this company is experiencing tremendous growth. If the sales really take off might we see sales of $1/share.....this would indicate $3-3.25 Cdn. Anyway Tara, I will continue to dig. Talk to you later. Bill

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