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Strategies & Market Trends : Tang's school of business management for serious investors

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From: Arthur Tang10/10/2006 4:54:06 AM
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Business plan is earnings per share estimate?

Efficiency, then targeting customers will result in a revenue per share estimate, and 5% profit will end up with P/E ratio of 20. Less profit will have less P/E ratio.

However, if revenue becomes explosive, initial P/E ratio will be based on projected earning per share based on the revenue which can achieve 5% profit.

Knowing the P/E ratio estimate, one can project what the stock value will be to the stockholders.

This business plan has to be shared with the market makers, so that distribution of the stock will be orderly. And each quarter, the earnings short fall will be guided. If management has huge stock options, the company has to be run as a public corporation. Stockholder's value is the way business is run.
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