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Microcap & Penny Stocks : LGOV - Largo Vista Group, Ltd. -- Ignore unavailable to you. Want to Upgrade?

To: broke2 who wrote (1040)	5/1/1998 10:44:00 AM
From: Dusty	Respond to of 7209

Broke2, Well said but one correction... they are GLOBAL 500... LOL I love it.. Dusty :o)

To: broke2 who wrote (1040)	5/1/1998 11:02:00 AM
From: jpbp	Read Replies (1) \| Respond to of 7209

As we contemplate such an expensive ask (now .28) Let's consider what is cheap and what is expensive. Currently the market has put a total valuation on Largo of a whopping 12.7 million (by last trade) 12.7 million market cap for a company that has assets last year 96' of 6.5 million and profits of 943,000. Right now, as of last trade a PE of around 13.46. Consider that conservative estimates are that LPG imports in China are expanding at the rate of 35 % a year. The real question is % customer growth that Largo will experience. As of last financials they had around 80,000 customers. My guess is that the number of customer will grow (hence revenue to Largo) at a rate MUCH faster than 35 %. I fully expect that there will be much more than 108,000 customer at year end 97' (which would equal 35 %) They are the only company in the region so competition is a non factor. They are backed BY the givernment a fact not fully understood by nearly anyone as to what the ramifications are for this. I'll just say i know that Exxon, Mobil and others would sure love to be BACKED by a the government and invited into a monopoly in the world's largest economy. Think in your head 5 times the number of people in America!!! At any rate...while some will be cringing to pay .28 a share for this growth...that's an estimated PE from last year's financials (I'm guessing )(if profits only rise at 35 % rate from last year to 1,273,050...although I would not at all be surprised to see more profits than this) a whopping PE of 10!!!!!! Why all the hypothetical numbers....because in this country in a field like the internet where competition is FIERCE and profits remain to be seen...we pay 100 or 200 times PE not knowing just how many companies will be squeezed out in 3 or 5 years. Yet here sits a company on the ground floor....guaranteed to make profits for 40 years on the pipelines they put in growing as fast as any industry in the world and is profitable.....VERY profitable (15% net income from last years revenues) and it sits with an estimated PE of 10-14 on last years earnings... In this country we routinely pay a 25 PE for NEXT YEAR'S earnings and this is the estimated PE for last year and the actual PE for two years ago. This company Should trade at a 75-100 PE of future earnings...no doubt about it and I believe it will...for those that are patient. Just thought I'd share why I feel .28 is still cheap. Wanting those financials to crunch all the way to the bank..... Let me put in an official disclaimer...no I don't know what the financials will be ( I wish)...I am hypothesizing based on industry estimates of 35% growth for this industry...I feel comfortable expecting Largo to show this growth in revenues and earnings...my money is where my mouth is) nuff said jp