Littlefield Corporation (LTFD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Littlefield Corporation (LTFD)

LTFD 0.170

0.0%

Sep 29 11:29 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ted w. kentzel who wrote (6178)	1/6/1998 4:15:00 AM
From: jgideon	Read Replies (1) of 10368

You folks are forgetting to take the warrant call share dilution into account. Look at the Q3 press release and you'll see that BNGO has $1.866 M in net income for the first nine months of the year. A simple extrapolation of that figure (i.e., multiply by 4/3) gets you $2.488 M for the year. With 9.5 M shares outstanding after the warrant call, you get an EPS of 0.26 for 1997. Because Darlington is being treated as a pooling and was stated to be accretive, this is a low end estimate. To include Darlington, we add $4 M to revenues, which translates to about $1 M in net income (using a 25% profit margin - BNGO currently has a 26% profit margin). So let's estimate about $3.5 M in net income after the pooling. Again, with 9.5 M shares, we get about 0.37 EPS for 1997. That figure does not make any unusally optimistic assumptions. Now, give BNGO only a PE of 20 and you get a $7.40 price. A company growing this fast deserves a higher PE multiple, but that won't happen until the SC VGM situation becomes clearer. jg

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next