I'm not sure if Phred Garvin had planned to post t
Post# of 3844
Posted On: 01/29/2014 3:06:56 PM
Re: CashStrapped #2464
I'm not sure if Phred Garvin had planned to post this here today but he is knocking it out of the park with his DD. He wrote the following -
" PPS $EWSI is massively undervalued.
I don't feel the need to post very often, but we’re due for a re-write on how EWSI trades vs. other OTC stocks, as well as take look at some 2014 projections. If you are investing, you should learn all you can about the company and read the EDGAR/SEC filings rather than rely on the opinions of those on a message board, my opinion included.
Information is KING in my book. I have done some simple due diligence by pulling out numbers from prior financial and making some mathematical implications. Real Information. The numbers will be audited, and they will come out on time. Read all the K's from last year, and all the statements from the CEO. Some like to bash the accountant, or the change of accountants or something of the like, but the reality is that this is a real company and they are filing numbers through the SEC in a timely manner.
This stock should shake loose of all the games and start to actually trade logically. I guess putting logic out instead of fear and disinformation might be helpful to potential investors.
I've been to EWSI facilities. I know Martie. Martie is ALL about measurables, which is why he continues to hit his goals as EWSI picks up its stride. There are those that like to give him a daily bash, but he's a good guy, and he has yet to sell any shares. You can feel free to look it up at EDGAR. All verifiable. http://www.nasdaq.com/symbol/ewsi/insider-trades/sells In fact NO insider has sold yet.
I'm excited for Malone Bailey, as they have way better experience truing up Chinese accounting with GAAP. This is an area of expertise that Sadler was lacking, and Martie corrected the deficiency. Give Martie his props here. Good foresight as China is expanding fast, and it appears all the major accounting companies are challenged in the nuances of Chinese accounting.
IMO after reading all the K's, the re-audited 2Q and 3Q numbers are going to be BETTER than previously reported. There seems to be a $750,000 swing in EWSI favor. Look it up. It’s all in there.
There is SO much good news with $EWSI as Martie keeps hitting his numbers. PPS logically has to catch up, and it may happen explosively. A major point of the otherwise lackluster conference call was the corporate wide push to uplist.
Clearly Martie wants to escape the games of the OTC. When we hit $60m market value, $2+ a share and over 300 shareholders, we're Nasdaq bound IMO!
Its time to again revisit basic math on $EWSI. The longs know what they hold, and here's why we toss out the emotional games and look at the numbers.
Based on 250M shares.
Lets make some logical assumptions for Q4 and annualized 2014 numbers. Once Malone Bailey audits, my guess is that we have a revised Q3 adding $750K ($2,076,130 from PRODUCT sales & $3,254,310 from SERVICE revenues + wherever the $750K falls), pushing the pre Q4 (Q1+Q2+Q3) number from 8.429M to 9.179M.
Let’s put Q4 at around 10M with the addition of 2TRG numbers. That puts our annual revenue at an estimated $19.179M.
Awesome growth, and Martie has stated that he will continue to focus on his growth as a priority for 2014. Feel free to scale the Q4 up and down based on your own DD.
The next thing we have to discuss is a multiplier value. I’ve used all sorts of econometric modeling to test out different theories, but a good back of the envelope Market Cap multiplier should be about 5+ times a company's annual revenue. This multiplier adjusts up or down for profitability, growth, assets and other variables, but it is a good back of the envelope estimator. Feel free to use your own. I modeled everything from 2.25 to 7.75.
Q4: $10 mm
9.179 + 10 = $19.179 mm , making market cap 5x19.179=$95.895 Market Cap
@ 250,000,000 = $.38 PPS
So right now we not only have a PPS BELOW the annualized revenue, but we are trading substantially below a completely reasonable PPS estimate.
Lets roll into 2014 Numbers, and use Martie’s words on projections, and while doubling of Q’s has to slow down at some point, it will mostly hold in 2014 due to strong M&A, which is the core of the business expansion model. You can play with this as well, but thus far, one must take Martie at his word on his business plan for 2014.
At this point we should talk dilution and move the O/S to 300M. You can play with this number as well. As long as growth continues, I’m comfortable with controlled dilution. Got to keep enough shares in the middle for new investors to get in, as the float will get locked as insiders aren’t selling, and there has been a lot of accumulation into long hands. Lots of flippers get hung up on dilution, and there's been a huge amount speculated on this, but proper dilution helps spread out the stock to new investors, and the pool will have to increase if EWSI is going to uplist. It is a Nasdaq requirement. 300+ individual shareholders. These are my estimates and you can scale them at will.
Q4 -13 ~10M
Q1 -14 ~15M
Q2 -14 ~25M
Q3 -14 ~40M
Q4 -14 ~65M
2014 TOTAL: $145M
Market cap: depends on multiplier.
At 2.25 = $326M or $1.08 PPS @ 300M Shares
At 5.0 = $725M or $2.41 PPS @ 300M Shares
Feel free to mod the math with your own projections. Do your own DD on this one. It is my only OTC stock that I trade, as it operates with the clarity and filing of a big board company. The CEO actively pursues the goals and transparency of a Nasdaq company.
While there are constant games with the stock of the company, separating that out there is little doubt that the core of the company is a well managed company that is doing what 99.99% of companies on the OTC cannot. It posts auditable revenues and is breaking ground in a previously untapped market for a public company"
" PPS $EWSI is massively undervalued.
I don't feel the need to post very often, but we’re due for a re-write on how EWSI trades vs. other OTC stocks, as well as take look at some 2014 projections. If you are investing, you should learn all you can about the company and read the EDGAR/SEC filings rather than rely on the opinions of those on a message board, my opinion included.
Information is KING in my book. I have done some simple due diligence by pulling out numbers from prior financial and making some mathematical implications. Real Information. The numbers will be audited, and they will come out on time. Read all the K's from last year, and all the statements from the CEO. Some like to bash the accountant, or the change of accountants or something of the like, but the reality is that this is a real company and they are filing numbers through the SEC in a timely manner.
This stock should shake loose of all the games and start to actually trade logically. I guess putting logic out instead of fear and disinformation might be helpful to potential investors.
I've been to EWSI facilities. I know Martie. Martie is ALL about measurables, which is why he continues to hit his goals as EWSI picks up its stride. There are those that like to give him a daily bash, but he's a good guy, and he has yet to sell any shares. You can feel free to look it up at EDGAR. All verifiable. http://www.nasdaq.com/symbol/ewsi/insider-trades/sells In fact NO insider has sold yet.
I'm excited for Malone Bailey, as they have way better experience truing up Chinese accounting with GAAP. This is an area of expertise that Sadler was lacking, and Martie corrected the deficiency. Give Martie his props here. Good foresight as China is expanding fast, and it appears all the major accounting companies are challenged in the nuances of Chinese accounting.
IMO after reading all the K's, the re-audited 2Q and 3Q numbers are going to be BETTER than previously reported. There seems to be a $750,000 swing in EWSI favor. Look it up. It’s all in there.
There is SO much good news with $EWSI as Martie keeps hitting his numbers. PPS logically has to catch up, and it may happen explosively. A major point of the otherwise lackluster conference call was the corporate wide push to uplist.
Clearly Martie wants to escape the games of the OTC. When we hit $60m market value, $2+ a share and over 300 shareholders, we're Nasdaq bound IMO!
Its time to again revisit basic math on $EWSI. The longs know what they hold, and here's why we toss out the emotional games and look at the numbers.
Based on 250M shares.
Lets make some logical assumptions for Q4 and annualized 2014 numbers. Once Malone Bailey audits, my guess is that we have a revised Q3 adding $750K ($2,076,130 from PRODUCT sales & $3,254,310 from SERVICE revenues + wherever the $750K falls), pushing the pre Q4 (Q1+Q2+Q3) number from 8.429M to 9.179M.
Let’s put Q4 at around 10M with the addition of 2TRG numbers. That puts our annual revenue at an estimated $19.179M.
Awesome growth, and Martie has stated that he will continue to focus on his growth as a priority for 2014. Feel free to scale the Q4 up and down based on your own DD.
The next thing we have to discuss is a multiplier value. I’ve used all sorts of econometric modeling to test out different theories, but a good back of the envelope Market Cap multiplier should be about 5+ times a company's annual revenue. This multiplier adjusts up or down for profitability, growth, assets and other variables, but it is a good back of the envelope estimator. Feel free to use your own. I modeled everything from 2.25 to 7.75.
Q4: $10 mm
9.179 + 10 = $19.179 mm , making market cap 5x19.179=$95.895 Market Cap
@ 250,000,000 = $.38 PPS
So right now we not only have a PPS BELOW the annualized revenue, but we are trading substantially below a completely reasonable PPS estimate.
Lets roll into 2014 Numbers, and use Martie’s words on projections, and while doubling of Q’s has to slow down at some point, it will mostly hold in 2014 due to strong M&A, which is the core of the business expansion model. You can play with this as well, but thus far, one must take Martie at his word on his business plan for 2014.
At this point we should talk dilution and move the O/S to 300M. You can play with this number as well. As long as growth continues, I’m comfortable with controlled dilution. Got to keep enough shares in the middle for new investors to get in, as the float will get locked as insiders aren’t selling, and there has been a lot of accumulation into long hands. Lots of flippers get hung up on dilution, and there's been a huge amount speculated on this, but proper dilution helps spread out the stock to new investors, and the pool will have to increase if EWSI is going to uplist. It is a Nasdaq requirement. 300+ individual shareholders. These are my estimates and you can scale them at will.
Q4 -13 ~10M
Q1 -14 ~15M
Q2 -14 ~25M
Q3 -14 ~40M
Q4 -14 ~65M
2014 TOTAL: $145M
Market cap: depends on multiplier.
At 2.25 = $326M or $1.08 PPS @ 300M Shares
At 5.0 = $725M or $2.41 PPS @ 300M Shares
Feel free to mod the math with your own projections. Do your own DD on this one. It is my only OTC stock that I trade, as it operates with the clarity and filing of a big board company. The CEO actively pursues the goals and transparency of a Nasdaq company.
While there are constant games with the stock of the company, separating that out there is little doubt that the core of the company is a well managed company that is doing what 99.99% of companies on the OTC cannot. It posts auditable revenues and is breaking ground in a previously untapped market for a public company"
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