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Posted On: 06/01/2012 11:49:53 PM
Post# of 99250
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Posted By: junewong

RCHN..The beauty of a great share structure.

Any attempts at valuation will show just how undervalued this is and how the value is about to rise dramatically.

This q that just passed changed the fundies tremendously and the next q is going to be a dramatic game changer and every one is going to know it.

The quarter just reported replaced a loss of $37,615 with a profit of $39,441. Seems minor doesn't it.

Trailing annual earnings just went from $102,886 to $179,942. Again it looks good but doesn't give the true picture of the value and huge difference made with such a fantastic share structure.

Trailing eps just went from .0046 to .008. Dramatic improvement.

and gives a hint of what is coming after the next q is reported. A loss of $19,214 is going to be replaced with what I think is going to be their best q ever thanks to 30% increases in industrial sales and the release of all the new products increasing the retail sales numbers.

Lets be conservative and project a profit of 100K and see how that affects the value.

By replacing the loss of $19,214 with a profit of 100K the trailing annual earnings jumps from $179,942 to $299,156. Sweet!

Trailing eps jumps from .008 to .013.

Dramatic!

So what's it worth? No debt, growing, profitable tech co with a fantastic share structure. I suspect a trailing p/e of 20 is justified.

So based on may calculations, it will be worth .26 in 3 months.

Then we head into their seasonally strong quarters where they can put up some mind blowing numbers thanks to new products and 30% increase in industrial sales.

So what happens if it gets hot and people start doing forward calculations. It's not like pink sheet stocks never trade above current value. I would suggest most of them do with a huge percentage of them being worth nothing. LOL!

So yeah, I think this is an undiscovered gem that is going to be discovered and should provide a chance to make some nice returns in a very bad market where a lot of people are going to lose.

That is why I am so stoked.


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