Future Expectations? PRWT looks good now.
Isoman's earlier analysis on the valuation of PRWT is flawed.
Let's have a closer look at what is at hand and do the math ourselves:
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VALUATION OF PRWT:
800 Belize contracts in hand now at $33,000 each is about $26,400,000. A 5% origination fee is $1,320,000 up front and then there is an ongoing 2% fee or $528,000 per year. Then there are 5200 more houses in Belize for $171,000,000 yet to go ($8,555,000 finders fee and another $3.5 million on going income. That's ongoing income from Belize of $4 million and a one time finders fees of about $8.8
million divided over next two years works out to about $8 million per year next two years and $4 million thereafter.
Costa Rico is 3 times this -- at 20,000 homes -- even though it is not done yet but assuming it becomes a done deal, that would add another $24,000,000 in one time 5% fees and $12,000,000 in annual 2% fees.
If you add the two together it's about $16,000,000 per year in 2% ongoing fees and probably another $8,000,000 a year in 5% fees for the next three years...$24,000,000 per year in fees and this company is only about 8 weeks old.
This works out to gross income of about .032 per share using 750,000,000 shares outstanding, which is the correct number according to John Schmitz. Now, let's say we use Isoman's number that 25% of gross profit will be net profit, then we are looking at $0.032 X 0.25 = $0.008 net earnings per share. Using Isoman's number of 20X EPS we have a company valued RIGHT NOW WITH ONLY THE BELIZE AND COSTA RICA BUSINESS at 20 x $0.008 = $.16. As for me I prefer to use a more conservative figure of 10X which would give a valuation of PRWT at $0.08 per share.
Now on top of this add interactive video phone sales, the on line brokerage business, the US domestic mortgage business and the rest of Latin American opportunities and I'll let you guess the numbers. And none of this takes into account rumored acquisitions of a federal thrift, an insurance company and a publicly traded rehab company.
So what is PRWT worth? Based on some rough calculations I say at a minimum about $0.08 a share only taking into account the Belize and Costa Rica projects, and probably double to triple that with all else in the pot. So I feel quite comfortable recommending this stock as a solid buy all the way to $.16, possibly to $.20 per share. |
