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Microcap & Penny Stocks : Financial Intranet Inc. (OTC:BB:FNTN) -- Ignore unavailable to you. Want to Upgrade?

To: Robert W. Dog who wrote (622)	1/14/1998 7:13:00 PM
From: Eric G. Erpenbeck	Read Replies (2) \| Respond to of 2897

Wow this is Great news IMO... This really improves the outlook to me. While as pointed out the actual revenues to be generated are still unknown at this point, lets just be really pessimistic and assume they only get 2% of the 125,000 agents/subscribers sign on, that would give them a minimum of $6M in revenues this year and using a straight line for Revenue to NI based on FNTN anticipated expenses (which I believe would also be a conservative assumption) we would arrive at a $1M net income (if only 2% instead of 20% and using a 6 to 1 conversion ratio for Revenue to NI.) for this year. With 10M shares outstanding, this would give us an EPS of .1. For the fun of it lets use an Industry average PE ratio of 10 (to be very conservative once again, you could easily use 20) and you arrive at an estimated stock price or value of $1/share or a 3 to 4 times the value of our current investment at the end of next year. So being a complete pessimist I think we are in for good profits on this one, unless Mr Shepard decides to dilute the stock value or they issue unknown options or warrants...... If you use their numbers and assuming a 6:1 ratio from Revenue to NI, we would get EPS of 1 (assuming 10M shares outstanding) or a stock price of $10 to $20 depending on your assumed PE ratio. I'll run with my numbers, due to the uncertainty of the number of subscribers and to conservatively value my investment risk. I feel much better now!! It would be interesting to know Mike Shepards plans for cash (ie no dilution, warrants or options) and his true feelings as to anticipated number of subscribers... I am pretty excited about this news. It seems huge to me...