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Strategies & Market Trends : Beat The Street With SI Traders

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To: heinz44 who wrote (148531)7/8/2014 9:54:48 AM
From: retiredbroker  Read Replies (1) of 233894
 
I wonder if this guy was brought in to oversee a merger or buy out ? Still say you would win very large either way.
(Below borrowed from another site)

Say a $500 Billion/Year industry,

- Assume 1% Market Share ($5B/Year Sales)

- @ 20 % Gross Margin after costs ($1B/Year Profit)

- Divided by 210M Outstanding Shares ($4.70/Share)

- X 20:1 Ratio (Standard Price to Earning Ratio of Stock Price)

- Answer $94/Share = Getting Really Rich

- More than 1% Market Share = Getting Really Rich

- More than 20% Gross Margin = Getting Really Rich

Predicted Value of P2 - hmmm, I am comfortable @ $15B

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