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Gold/Mining/Energy : Direct Focus Inc. (DFXI) -- Ignore unavailable to you. Want to Upgrade?

To: Gofer who wrote (313)	10/5/1998 11:07:00 AM
From: Gordo	Respond to of 768

Gofer, It would probably be very safe to use 18% for Q3 as well, given that costs associated with developed the infomercials for Instant Comfort are capitalized, not expensed. Any launch costs should come in at significantly less than the 2% of gross revenue ($300,000) you are using. Assuming 18% net profit margin, I get earnings of $4.14M (Cdn), which translates into about $0.44 EPS. This would give us trailing 12 month earnings of $1.33, and a trailing P/E of just under 10 at current prices. Also interesting to note that this time around, it doesn't look like we will see the typical pop in price that we have seen in the past when financials are released (at least not yet). gord