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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON?

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To: R. Gates who wrote (1925)5/11/1998 2:11:00 PM
From: John Schmitt  Read Replies (3) of 6931
 
So, I guess people are doing a little valuation calculation now based on the numbers released? I know that bb's don't really follow the typical valuation ratios due to their inherent instability, but it's good to look at anyway.

On current earnings of 130K per month at a profit margin of 70% per year, we are looking at a net profit of 1.092 million per year. This would give an EPS of approximately $.044. Given a P/E multiple of 20 (which is conservative for this type of industry), this would mean that by this calculation, the stock would be about fairly valued at $.88. Now, if you go on projected earnings, which are expected to increase by 50%, then the EPS would be about $.066, and the stock would be approximately fairly valued (on projected earnings) at about $1.32.

Well, that's just a quick little valuation calculation for those that might care. Seems undervalued to me, as long as my math is correct.

John
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