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

To: Chris O'Keefe who wrote (425)	4/26/1998 4:23:00 PM
From: Mark[ox5]	Respond to of 3129

From what I have learned from DavidCG's posts, the company's EPS last year was .315, and this year's EPS is conservatively figured to be around .50. First of all, I think the .50 figure is LOW. They did the .31 without ANY telecom revenue.. not a penny. And no I dont have a EPS estimate for the year and will wait for the other contracts to come in before hazarding a guess. But I did do the math on the Mexican contract alone and if it is 3-5% profit margin you have .17 to .28 EPS on that 1 contract ALONE. So you can add a $60M contract onto that, <Meyer Group> a $6-$24M contract onto that, <China> and then you add .31 last year's continuing operations on 10M shares , so now we have double the shares (21M) so you have to HALVE last years EPS..so that is .15 from last years work. Oh yeh and add onto a state of the art production facility onto that, and possible earnings from THAT. So.... .50 EPS to me is very low. If we assume a P/E of 10, GNNX is a $5/share stock; a P/E of 20 and GNNX is a $10/share stock. I am not sure what EPS GNNX can reach on the OTC-BB board simply because there are not a whole bunch of "investors" here.. many on this exchange are momentum people. So I am anxious for a move to NASDAQ listing hopefully within 4-6 months. I think this sort of company on NASDAQ would command at least a 30 P/E on the TELECOM side and I am not sure what the PE would be for the media side.... But either way, $3 will be a bargain in a month.... (IMHO) Mark