I just ran across this today And after some DD..
Post# of 17
And after some DD... will get a starter come Monday
Thanks Stervc
DD by Stervc 3-4-16
FTNW Fundamental Valuation of $4.00+ to Consider…
Below is a fundamental valuation model that I put together for FTNW that is based on the previous contracts PR-ed and the recent news released on Mar 2, 2015 indicated below that confirms that FTNWcould justify trading in the $4.00+ per share range after more maturity takes place and more market recognition:
http://www.ftenetworkservices.com/
Quote:
http://www.otcmarkets.com/edgar/GetFilingHtml...D=11194605
http://www.otcmarkets.com/stock/FTNW/news/FTE...07&b=y
FTE Networks Signs Strategic Alliance Agreement With Edge Communications and Expands in Four Markets
Earlier this month, Edge engaged FTE with a signed Letter of Intent for work to support Edge on a multi-state network expansion project valued up to $100 million dollars over the next 36 months. Under the terms of the agreement, FTE Networks will be performing engineering, management and outside plant infrastructure services.
http://www.otcmarkets.com/stock/FTNW/news/FTE...63&b=y
FTE Networks Secures Multi-Million Dollar Contract With Fortune 500 Telecommunications Carrier
The contract is expected to commence on April 1, 2016 and is valued at over $45 million dollars over the next three years with the potential for additional service offerings in existing and new markets. …
Revenues & Contract Summary:
** Annual Revenue = $14.4 Million
** Contract with Edge Communications = $100 Million over next 3 years
** Contract with Fortune 500 Telecommunications Carrier = $45 Million over next 3 years
** Total Revenues = $14.4M + ($100M ÷ 3 yrs) + ($45M ÷ 3 yrs) = $62.7 Million in Total Revenues (Per Year for Next 3 Years)
** I have decided to max out the contracts as one could use the Substitution Property to play around with the amount of revenues as one would deem fit.
Within the Technology Sector, of which we can at least be sure of where FTNWwould exist to trade, the Price to Earnings (PE) Ratio and the Net Profit Margin for stocks trading within the Technology Sector are as indicated below:
https://biz.yahoo.com/p/8conameu.html
PE Ratio = 24.52
Net Profit Margin % = 13.28
Let me attempt to break this down a step further to better understand what this all means as it relates to FTNW.
The Outstanding Shares (OS) is the key denominator that is used to assess a fundamental valuation through the computation of deriving at an Earnings Per Share (EPS) from the formula below:
Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
There is more than one way for deriving Net Income, for this model, but I will multiply the amount of Revenues by the Net Profit Margin since it is given as a known variable of consideration.
The EPS is what is used by the market to determine where a stock should trade by multiplying that stock’s EPS by a Price to Earnings (P/E) Ratio which is the growth rate for a particular Sector or Industry. For those new for understanding what a P/E Ratio is, read the links below that hopefully will help: