It was pretty quiet today. Well, maybe I can spice things up a bit with some speculation.
.
I am really impressed with the acquisitions Joe is bringing in. The thing I like the most is the continual growth of the new acquisitions. The following two statements from the Locus press release:
.
"With the rapid growth of Edge, as evidenced by a doubling of its revenues,....."
.
"Locus is profitable and is at a current run rate of $40 million in revenues. It has experienced rapid growth over the past five years. Revenues have at least doubled each year since 1993. It is expected that 1997 revenues will triple 1996 figures."
.
These companies are growing FAST!!! My hat is off to Joe and all the folks back at HQ for all of their great work. Now, lets take a look at some of the numbers.
.
First let me steal some numbers from JHA from this post:
Message 4856655
(Great post James, thanks!!!)
.
James conservatively estimated $38-$45 million just from continuing operations (Locus not included yet).
.
Here is where the speculation and fun comes in. He estimated about $16-$20 million for Edge. But, I am going to continue the trend that I see taking place and say Edge will double revenues from where it was in May. This does not seem unrealistic if we take a look at the growth that has occurred already and we consider the benefits of consolidating costs with DCI. Therefore, that gives us $2 million X 12 months or $24 million/ year currently. (If we double this rate: $48 million!!, but I will stick with $24 out of fear of selling my house to buy more stock).
.
Now, lets say the Locus deal closes (just my hope). We know that revenues have AT LEAST doubled every year for the past 5 years. So, they are currently running about $40 million. I will not get too crazy and just say things will grow by 50%. That will leave us with $60 million. If revenues did double from here, that would bump it up to $80 million!!! (actually last year they tripled, so this may be conservative too - yowee!).
.
Okay, now lets take out Edge from JHA's numbers. This will leave us with about $23 million. Now we add in my speculations:
.
$23 + $24(Edge) + $60(Locus) = $107 million
.
Again, this is pure speculation and possibly fantasy on my part. But, it sure is fun! You know, the real exciting thing is that Joe is not the type of guy to stop acquiring companies just because of this either. I expect him to continue acquiring until we are bought out!!!!
.
Enjoy some food for thought,
DAVE |
