RAMTRONIAN's Cache Inn Message Board

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Politics : RAMTRONIAN's Cache Inn

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From: Bret Masterson	3/7/2008 5:29:23 PM
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Very interesting how a simplified model generates a close approximation of RMTRs share price, driven off pretty reasonable assumptions. I think the thing that strikes me is that I had expected RMTRs operating margins to really start getting some operating leverage, but yet the management hasn't really moved up the long term operating margin forecast much. Still saying that long-term operating margin goal is only 13 to 15% (BEFORE STOCK BASED COMPENSATION). So realistic real range is lower (hence I put in 10%). Simple Valuation Model for Ramtron Revenues ($Millions) ................$65.0 Operating Margin (EBIT / Revenue).......10% Tax Rate (%)...........................38.5% After Tax Earnings ($Millions).........$4.0 Growth Multiple 25 Enterprise Value ($Millions) $99.9 Share outstanding (Millions) 25.3 Estimated Share Price $3.95

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