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Non-Tech : National Affiliated (NAAC)

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To: RADARLUV who wrote (28)8/29/1997 4:05:00 PM
From: The Pope   of 88
 
Just read J. Freedman's recommendation. They think its a $10 stock in 9 to 18 months. Let's see . . .

A $10 stock at a P/E of 20 means .50 per share earnings. With 9 million shares outstanding, that's earnings of $4.5 million. NAAC earned 47K on 710K of revenue, or about 7% of revenue. Let's say they can bump that up to 10% due to economies of scale. That means they'll have to have revenues of $45 million to even be close to $10 per share evaluation. Where is that going to come from?

Somebody?
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