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Microcap & Penny Stocks : NETZ - gets deal with DEC! future 100 bagger?

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To: TokyoMex who wrote (227)11/19/1997 7:36:00 PM
From: papa bear  Read Replies (2) of 1702
 
Hi Tokyo...

I'm not sure I'm familiar w/ the margin # you're assuming, since I don't know the normal margins in an ad business such as this.

Is a margin as high as 70% on an ad company the norm? I really don't know... If I were to (probably incorrectly) compare the suspected #'s to a typical mfg. company, which it obviously is not, I would come up with the following target price or valuation:

$12M gross revenues ===> @ 10% net profit ===> $1.2M

This, of course divided by 12M shares is about $0.10 per share; and finally at a measily 20% (conservative PE), this translates to a fair market value of about $2.00, (at the end of the '98 FY). I welcome comment and debate - I'm not sure if my assumptions are even correct.
Incidentally, the $12 M figure came from $300M five years out cut in half each year and then "a little bit less": $18 M ===> down to $12 M.
Of course, w/o some report stuff, this is real seat-of-the-pants math!

Tonto: "if you're listening", please post some numbers from the info they said they were sending you. I also have a call into echoMedia to get the same info.

Finally -- also called the SEC in Washington, DC to determine if there really was an electronic 10K or 10Q that was in the process of being filed: as I said earlier: none on EDGAR as of now. Really agree w/an earlier poster that I feel like I'm flyin' blind thru the smoke w/o seeing the financials in a formal report...

best regards,

RM
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