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Microcap & Penny Stocks : THE OZONE COMPANY! (OZON) -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey L. Henken who wrote (941)	10/25/1997 8:46:00 PM
From: Aishwarya	Read Replies (1) \| Respond to of 4356

Hi Jeff and all others Food for thought, I think we all owe you a pat on the back for replying to Melinda. It is indeed well deserved for these folks who are working hard for themselves and all investors like us. I would also like to give some meat to my predictions. Here are some numbers to begin with. Good CFO's make it look a lot prettier on a balance sheet as they know to play with all numbers a lot better. Assuming that all their businesses (i.e. Polymer, Food and laundry)all get 1% of the food business forecast revenues. Then see the numbers that follow. I will give this for a year. Sales + Revenues (All organizations) A $4.0 billion (In a $400 billion industry) Cost of the equipment at installation B $2.5 billion --------------------------------------------------------------------- Gross Profit (A-B) C $1.5 billion Suppose Sales and other expenses are D $0.6 billion ---------------------------------------------------------------------- Operating Income will be E $0.9 billion Depreciation & Amortization costs F $0.25 billion ---------------------------------------------------------------------- EBIT (Earnings before Tax) (E-F) G $0.45 billion Income Tax H $0.15 billion ---------------------------------------------------------------------- Net Income (G-H) I $0.3 billion So now we have the number we like to see most in good balance sheets. I suppose a company will give shareholders 25% return as dividend or either way they may choose to give a duck for dividend and reinvest the complete Net Income and make their Return on equity numbers higher. If i am the presi i will give 25% dividend to loyal shareholders. Then dividend declared J (25% of .3 b) $75000000 Divide this by 20 million as the stock will dilute due to expansion.It wont drive the stock down if the company will increase long term capital expenditure and has very small short term loans. I get the dividend per share by doing that = $3.75 Remember the rest they reivested for growth should give them more than 10% growth per annum. The spike in growth will be seen gradually because the CPA's will spread expenses over a period of time. Now when you have over 10% growth anaysts love it. If this companys profits are expected to rise 10% per year on an average then it would be reasonable to assume that the share will sell at least 10 times (PE Ratio =10) the analyst estimates of earnings per share for the year. Then i get the number 3.75 * 10 = $37.5. I ask all on this thread to ponder a little on this and come up with other thoughts/numbers. This ppp does not work too good for me at home. I will soon post a list of sites which may be of interest to the board. I have a feeling that the management may hire others who have lots of connctions in the Food processing industry and really make this in to a billion dollar comapny soon. I am also assuming that they will be the first to market the O3 technology to the Industry which will give them enough lead to corner 1% or more of the estimated $430 billion dollars. Even though the prospects are bright it would good to take all precautions to protect your profits when the time is ripe. Then you will really learn to appreciate investments. All will be rewarded shortly i think. May the OZON tribe prosper..... GO OZON Later Sri.