Silicon Investor (SI) -- The First Internet Community

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.

Gold/Mining/Energy : PYNG Technologies -- Ignore unavailable to you. Want to Upgrade?

To: kimball93 who wrote (7501)	7/29/2005 9:24:07 AM
From: Jack Rayfield	Respond to of 8117

The C$.40 cent EPS times a 25 PE to get to C$10.00 seems very reasonable to me. In my experience a early stage company like Pyng that has shown consistent 30% growth for the last 2 years should garner at least a 25 multiple on future 12 month EPS estimated earnings. I do not know what the tax rates are in Canada and remember Pyng has some tax loss carry forwards that will reduce future taxes until they are used up. My math to get to C$.40 EPS and at least C$10.00 a share is this: Comments Sales 16.3MM Units required 132K Cost 65% 5.7MM GM 10.6MM Expenses 2.0MM Operating Profit 8.6MM Taxes @35% 3.0MM Net Income 5.6MM 14MM Shares outstanding The 2MM in expense may be low as the 132K could require another facility but these are my rough numbers and seem certainly possible over the next 3 to 5 years. The way I get to a C$40 stock value at C$30MM in Sales is I believe the multiple would expand to maybe 50 if this level of sales were obtained in the next 5 years as this would require a growth rate of 60% or better and there would definitely be economies of scale which would improve the GM margin % to better than 65% PS- LOR good to see you have not lost your sense of humor. If nothing else the Pyng forum was once and could be again a pleasant escape. To be honest I did discuss recently with my wife buying 20K more shares but since my family is already sitting on over 100K (not just me but my extended family) she basically said that I should figure in some alimony and childcare if I decide to make that move. I would buy some more in a heartbeat but my hands are tied on this one after 7 years of hearing me give the next year pitch at our financial review time I can understand her reaction.