Nice post and update from Phred could refresh our
Post# of 3844
Posted On: 04/24/2014 6:40:04 PM
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Nice post and update from Phred could refresh our sticky's here 
PPS $EWSI is still massively undervalued.
I don't feel the need to post very often, unless I see something that needs clarity, 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 all financials and making some mathematical implications. Real Information.
Those that believed in Martie knew the numbers would be audited, and will continue to be audited, and they will come out on time. Nobody liked seeing the Chinese revenue peeled back, and we can only rely on past statements from Martie on guidance. I’m hoping the new relationship with RSBM, LLP is the correct firm with the correct accounting expertise in this area of Chinese leasing. Time will tell.
Read all the K's, 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.
The open letter & 8K states that they are, indeed, trying to solve the international PCAOB issue and get the fruit of their labor on the books. Hopefully they can solve the problem quickly and move forward. I, like several other investors on here would like to see a few audited Quarters. There is no rule against this and it would do a great deal to restore some instant faith in both Management and the business plan.
I keep thinking 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 and attended the grand opening in Cincinnati. I know Martie. Martie is ALL about measurables. There are those that like to give him a daily bash, but he is a good guy, and he has yet to sell any shares.
You can feel free to look it up at EDGAR. All verifiable. In fact NO insider has sold yet.
Again, I did not like the revolving accountant game last year. It made everyone uneasy and did nothing but fuel rampant speculation. Time will tell if Martie corrected the deficiency, and that he finally found the right accounting firm with the right area of expertise.
Give Martie his props here. He had to eat a boatload of crow based on prior projections. As a businessman, I’m sure it killed him to have to leave that revenue on the table. If the 10K had come out with $18M on it audited, less people would have questioned his competence. Dealing with adversity in growth is also a solid character trait. Investor confidence is horribly shaken, however and he has to deliver on revenue and solve the Chinese PCAOB issue. Don’t tell me about the pain anymore – show me the baby.
Again, an audited Q would be very beneficial. Swallowing the pain and getting the correct accountant as early as possible in the business may end up being good foresight as China is expanding fast, and it appears all the major accounting companies are challenged in the nuances of Chinese accounting. From a revenue perspective it is the lion’s share of the current business, and the controls and systems need to be built to be easily auditable.
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 345-400M shares.
Martie said that 2013 would be substantially ahead of $12M. We still have no idea what substantially means, but lets just pick a number. I originally was running with $19M based on Sadler statements, as well as the 2Q & 3Q unaudited numbers that CLEARLY CONTAINED THE CHINESE REVENUE EXPECTATIONS. Hate it or not, I’m not willing to call Martie a liar, just because of PCAOB problems. Lets just say $18M for a nice pretty number.
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.
$18MM, making market cap 5x18=$90 Market Cap
@ 345,000,000 = $0.26 PPS
Today we closed at $0.0219 with a Market Cap of 5.8M. So right now we not only have a PPS BELOW the annualize revenue, but we are trading substantially below a completely reasonable PPS estimate.
Lets roll into 2014 Numbers, and use Martie’s words on projections, but doubling of Q’s has to slow down at some point. You can play with this as well, but thus far, one must take Martie at his word on his business plan for 2014. I’m going to take his $50M estimate and over perform to $60M. He likes to downplay numbers so he can surprise in a positive way.
At this point we should talk dilution and move the O/S to 400M. You can play with this number as well. As long as growth continues, I’m comfortable with controlled dilution. I’m tired of the dilution that went on 1Q. So tired of it, and it has to stop for a while to help out the retail investors.
Hopefully any future S8 shares will be tied to performance benchmarks, especially for consultants. Tie them up for a year as well. Lots of flippers get hung up on dilution, and there's been a huge amount speculated on this, but proper dilution does have its place in growing a company out. These are my estimates and you can scale them at will.
Q4 -13 ~10M
Q1 -14 ~12M
Q2 -14 ~15M
Q3 -14 ~15M
Q4 -14 ~18M
2014 TOTAL: $60M
Market cap: depends on multiplier.
At 3.0 = $180M or $0.45 PPS @ 400M Shares
At 5.0 = $300M or $0.75 PPS @ 400M Shares
Feel free to mod the math with your own projections. Do your own DD on this one. It is one of the only OTC stocks that I trade, as it operates with the clarity and filing of a big board company.
A Theory on uplisting. The clear issue is PPS qualifications. A reverse split would get it there, as long as the revenue issues are solved and the market corrects. I’d be all for it if it was trading at $.75 and they needed it at $1.50 or $2.00 That makes sense. My theory expands on that. What about an acquisition of an existing weak company on a better exchange. I’d personally put logistics companies into play, as well as any company with good I/E capabilities. This is just a theory. It really needs to be fleshed out, but why not?
PPS $EWSI is still massively undervalued.
I don't feel the need to post very often, unless I see something that needs clarity, 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 all financials and making some mathematical implications. Real Information.
Those that believed in Martie knew the numbers would be audited, and will continue to be audited, and they will come out on time. Nobody liked seeing the Chinese revenue peeled back, and we can only rely on past statements from Martie on guidance. I’m hoping the new relationship with RSBM, LLP is the correct firm with the correct accounting expertise in this area of Chinese leasing. Time will tell.
Read all the K's, 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.
The open letter & 8K states that they are, indeed, trying to solve the international PCAOB issue and get the fruit of their labor on the books. Hopefully they can solve the problem quickly and move forward. I, like several other investors on here would like to see a few audited Quarters. There is no rule against this and it would do a great deal to restore some instant faith in both Management and the business plan.
I keep thinking 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 and attended the grand opening in Cincinnati. I know Martie. Martie is ALL about measurables. There are those that like to give him a daily bash, but he is a good guy, and he has yet to sell any shares.
You can feel free to look it up at EDGAR. All verifiable. In fact NO insider has sold yet.
Again, I did not like the revolving accountant game last year. It made everyone uneasy and did nothing but fuel rampant speculation. Time will tell if Martie corrected the deficiency, and that he finally found the right accounting firm with the right area of expertise.
Give Martie his props here. He had to eat a boatload of crow based on prior projections. As a businessman, I’m sure it killed him to have to leave that revenue on the table. If the 10K had come out with $18M on it audited, less people would have questioned his competence. Dealing with adversity in growth is also a solid character trait. Investor confidence is horribly shaken, however and he has to deliver on revenue and solve the Chinese PCAOB issue. Don’t tell me about the pain anymore – show me the baby.
Again, an audited Q would be very beneficial. Swallowing the pain and getting the correct accountant as early as possible in the business may end up being good foresight as China is expanding fast, and it appears all the major accounting companies are challenged in the nuances of Chinese accounting. From a revenue perspective it is the lion’s share of the current business, and the controls and systems need to be built to be easily auditable.
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 345-400M shares.
Martie said that 2013 would be substantially ahead of $12M. We still have no idea what substantially means, but lets just pick a number. I originally was running with $19M based on Sadler statements, as well as the 2Q & 3Q unaudited numbers that CLEARLY CONTAINED THE CHINESE REVENUE EXPECTATIONS. Hate it or not, I’m not willing to call Martie a liar, just because of PCAOB problems. Lets just say $18M for a nice pretty number.
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.
$18MM, making market cap 5x18=$90 Market Cap
@ 345,000,000 = $0.26 PPS
Today we closed at $0.0219 with a Market Cap of 5.8M. So right now we not only have a PPS BELOW the annualize revenue, but we are trading substantially below a completely reasonable PPS estimate.
Lets roll into 2014 Numbers, and use Martie’s words on projections, but doubling of Q’s has to slow down at some point. You can play with this as well, but thus far, one must take Martie at his word on his business plan for 2014. I’m going to take his $50M estimate and over perform to $60M. He likes to downplay numbers so he can surprise in a positive way.
At this point we should talk dilution and move the O/S to 400M. You can play with this number as well. As long as growth continues, I’m comfortable with controlled dilution. I’m tired of the dilution that went on 1Q. So tired of it, and it has to stop for a while to help out the retail investors.
Hopefully any future S8 shares will be tied to performance benchmarks, especially for consultants. Tie them up for a year as well. Lots of flippers get hung up on dilution, and there's been a huge amount speculated on this, but proper dilution does have its place in growing a company out. These are my estimates and you can scale them at will.
Q4 -13 ~10M
Q1 -14 ~12M
Q2 -14 ~15M
Q3 -14 ~15M
Q4 -14 ~18M
2014 TOTAL: $60M
Market cap: depends on multiplier.
At 3.0 = $180M or $0.45 PPS @ 400M Shares
At 5.0 = $300M or $0.75 PPS @ 400M Shares
Feel free to mod the math with your own projections. Do your own DD on this one. It is one of the only OTC stocks that I trade, as it operates with the clarity and filing of a big board company.
A Theory on uplisting. The clear issue is PPS qualifications. A reverse split would get it there, as long as the revenue issues are solved and the market corrects. I’d be all for it if it was trading at $.75 and they needed it at $1.50 or $2.00 That makes sense. My theory expands on that. What about an acquisition of an existing weak company on a better exchange. I’d personally put logistics companies into play, as well as any company with good I/E capabilities. This is just a theory. It really needs to be fleshed out, but why not?
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