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Microcap & Penny Stocks : 1ST MIRACLE GROUP (MVEE), founders last co. went $0.20-$46 -- Ignore unavailable to you. Want to Upgrade?

To: bottomfish who wrote (1548)	11/3/1998 12:54:00 AM
From: M.R. Davis	Read Replies (1) \| Respond to of 5541

I'd love some help on this from anyone out there. For the motion picture industry the average PE for TTM (trailing 12 months) is 65. Price to Sales average is 1.63. Which shows what low profitability these companies run at. i.e. for a company with 100 million shares priced at $10 each the company (if similar to industry average) would have to make sales of around $613 million. But a PE of 65 gives an EPS of only $0.15 and total profits of only $15 million. Questions to be addressed: Estimated Revenues over next 12 month period and estimated EPS? Or for a more long term analysis - what is the profitability? Has anyone here understood the business model clearly enough to estimate an improved profitability above industry average? Can it justify better Price to Sales than 1.63? Pixar has a PE of 184 and Price to Sales of 109. But I hardly think MVEE is going to make these sort of ratios..... Let's assume a PE of 65 then to reach $20 per share with 90 million outstanding we would need an eps of $0.31 or total net income of $27 million. Of course all this is working looking down the road where you've come from and most of the market works on where we are going. So future earnings estimates are the name of the game. Getting big name analysts to cover your company and then having them be impressed with the business model and the ability of the company to continue to increase revenues and contain costs... At this stage of the game we are just guessing.... That's why this is a speculative investment.