Let's play with today's numbers a bit, shall we?
The press release mentions that 50,000,000 students may sell these cards. Let's assume each of the 50,000,000 students sells one card each. Also from the press release, it states wanting to sell 7,000,000 cards and make $200,000,000 in revenues. Assuming the cost of each card is $10 (TSIG gets 50% of the purchase), each card sold will produce $23.57 in revenue [$5 for the card, $18.57 for photo/CD purchases - I got the $18.57 like this: ($200,000,000 - ($10 X 7,000,000))/7,000,000 ]
So, 50,000,000 cards sold = $1.18 Billion in revenue.
It TSIG makes 5% profit on the photo/CD sales and 100% on card sales, then profits from the card and product sales would be: (50,000,000 X $5) + (50,000,000 X $18.57 X 0.05) = $296 million
What would that do to the EPS?
Even at $200,000,000 in revenue as the PR stated, we'd be at $41.3 million in profits. ($200,000,000-35,000,000) X (296/1180) = $41.3 million.
I'd take $.70 EPS from this deal alone with an internet valuation, wouldn't you?
|
