Posted On: 05/11/2014 5:48:29 PM
Post# of 56324
Re: Hldctravel #21943
Hldctravel-
I see where you obtain the equity based on the recent $20M investment, but you're crossing the balance sheet and income statement with your application of EPS and PE to obtain a PPS.
If you want to have a PPS of $0.0914 from a PE of 16, we'll need to have earnings of $20M, not assets. I don't think we'll be operating off a PE of 16 once sales are being generated, rather a much higher multiple based on anticipated growth of the market and our growing market share.
It will be interesting to see earnings develop in the coming quarters and how FITX re-invests in expanding their capacity. I believe re-investment is going to have a significant impact against bottom line earnings, but it will be money well spent in expanding capacity for future sales growth. These initiatives will also drive a higher PE multiple in the early stages.
Regards,
kbulldog
I see where you obtain the equity based on the recent $20M investment, but you're crossing the balance sheet and income statement with your application of EPS and PE to obtain a PPS.
If you want to have a PPS of $0.0914 from a PE of 16, we'll need to have earnings of $20M, not assets. I don't think we'll be operating off a PE of 16 once sales are being generated, rather a much higher multiple based on anticipated growth of the market and our growing market share.
It will be interesting to see earnings develop in the coming quarters and how FITX re-invests in expanding their capacity. I believe re-investment is going to have a significant impact against bottom line earnings, but it will be money well spent in expanding capacity for future sales growth. These initiatives will also drive a higher PE multiple in the early stages.
Regards,
kbulldog
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