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Microcap & Penny Stocks : Genesis Media Group, Inc (GNNX) -- Ignore unavailable to you. Want to Upgrade?

To: DavidCG who wrote (310)	4/24/1998 9:48:00 AM
From: gunther	Read Replies (2) \| Respond to of 3129

David, GNNX has a $20/share potential in my opinion, I don't know how you came up with $4.00. For example: The company expects revenues of $ 180 million Assuming a very conservative profit of 10% The profit amounts to 18 million. Divide this by 21 million shares Gives earnings of $ 0.857/share. At a PE of 20, the market value should be at $17.14 approximately. Even at a PE of 10, the price should be at least $ 8.57. Clearly we are way undervalued. These calculations assume a very conservative profit margin and market PE values given that they have a 0.315/share earnings last year. Compare this to DGIV. The company is bringing in revenues worth of 28 million in terms of contracts for 1998. The total shares are 16 million. Lets assume a 15% profit ie., 4.2 million, and the earnings per share are $ 0.26; with a PE of 28 the market value is now close to $ 7.28. I expect that GNNX would beat the hell out of DGIV with the current contracts in place, once the profit takers are shaken out. A whopping $180 million revenues compared to $28 million for DGIV... Given three times the revenues over DGIV, the share price for GNNX should at least be valued three times more that of DGIV's current market price. I am interested in your opinion? Thanks Gunther.