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Microcap & Penny Stocks : EAG Eagle Broadband

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From: Arthur Tang7/23/2007 12:40:15 PM
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If you look at EAGB from the British way of valuation of a business; you first have to know how to make a profit with any organization.

Then the value of the company is the annual revenue. You borrow money to buy it and turn it around to make a profit over the interest payment. Of course you get a plush job and a big salary as income as well.

Normally, the company is valued at the sales revenue per year. And you expect to exceed the 5% interest rate for income.

EAGB then will be valued at $20 million($5 million per quarter revenue). Then run it for 8% profit over the 5% interest rate expenses.

This will put EAGB share at about 33 cents for M&A take out.

If there are competition bidding on the company and experts to run the triple play potential, the $65 million is not much to pay? The reason to value EAGB at $1 per share is based on the potential of satellite TV triple play potential market in high rise, track house network, and hospitality business of hotels and casinos.

Footnote:
If they sold the Houston network, there is $1 million profit in it. Cost had been written off?
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