Here's babybull's take on the situation.
Labwire, Inc
This morning, Labwire, Inc. (LBWR) reported 2006 year to date revenue through November of $3,342,698 compared to $2,314,622 for the same period a year earlier. This represents an increase of $1,028,076 or approximately 44.4%.
Based on eleven months of actual results and assuming that December 2006 revenue is the same as December 2005 revenue, BabyBulls.com projects fiscal year 2006 revenue of approximately $3,692,076. BabyBulls.com believes that projected 2006 revenue number of $3.7 million does not include the following: (i) 100% of the expected annualized revenue from the $1.8 million agreement announced on June 15, 2006; (ii) 100% of the expected annualized revenue from the up to $2.25 million agreement announced on October 3, 2006; and (iii) 100% of the expected annualized revenue from the agreement with Carolina Trailways announced on December 7, 2006. As a result, LBWR’s current run rate is higher than what it will announce for year end results and is probably somewhere well above the $4.0 million level.
Using a range of revenue multiples of between 5x and 7x, LBWR would be more fairly valued between $20 million and $28 million or between $0.143 per share and $0.20 per share. Based on the above assumptions, BabyBulls.com believes that LBWR is currently undervalued and represents an excellent investment opportunity.
To view the entire press release, please click here.
The full investor profile for Labwire, Inc is available at: www.babybulls.com/profile_LBWR.htm
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