$NXHZ Valuation~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Post# of 2108
Posted On: 07/17/2013 12:42:45 AM
$NXHZ Valuation~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The .15 Earnings Per Share (EPS) for NXHZ that you mentioned for being derived as the latest EPS for NXHZ sounds like a fair assessment. If they secure the acquisition from shares already existing as like how the CEO already mentioned, then this means that a .15 EPS is derived on the presumption that the OS was maxed out to its Authorized Shares (AS) amount of 250 Million shares as a worst case scenario (although confident that it won’t happen here) and also presuming that out of the $100 Million in ”uranium” reserves, only 37.5% will be immediately captured resulting in $37,500,000 for a Net Income amount to get the .15 EPS that you mentioned as indicated below...
$37,500,000 ÷ 250,000,000 (Maxed OS) = .15 EPS
If they partner with a major company as like has been mentioned, then I would give the life of the Gold Eagle Mine a 5 year life span to capture the reserves. This means that I would take that .15 EPS and divide it by 5 years to equate to basically an EPS of .03 per share.
Here’s where it can get a little tricky because now to derive the fundamental share price of where NXHZ should trade from the closure of this huge ”uranium” deal, we must multiply the EPS by a Price to Earnings (P/E) Ratio. There are a few different ways to logically derive what P/E Ratio to use, but I like to use what’s ”officially” indicated within the Yahoo Finance database for the ”Industry” of which a stock would trade. NXHZ has a $100 Million deal for ”uranium” confirmed by the Department of Energy (DOE) as indicated within the link below:
The .15 Earnings Per Share (EPS) for NXHZ that you mentioned for being derived as the latest EPS for NXHZ sounds like a fair assessment. If they secure the acquisition from shares already existing as like how the CEO already mentioned, then this means that a .15 EPS is derived on the presumption that the OS was maxed out to its Authorized Shares (AS) amount of 250 Million shares as a worst case scenario (although confident that it won’t happen here) and also presuming that out of the $100 Million in ”uranium” reserves, only 37.5% will be immediately captured resulting in $37,500,000 for a Net Income amount to get the .15 EPS that you mentioned as indicated below...
$37,500,000 ÷ 250,000,000 (Maxed OS) = .15 EPS
If they partner with a major company as like has been mentioned, then I would give the life of the Gold Eagle Mine a 5 year life span to capture the reserves. This means that I would take that .15 EPS and divide it by 5 years to equate to basically an EPS of .03 per share.
Here’s where it can get a little tricky because now to derive the fundamental share price of where NXHZ should trade from the closure of this huge ”uranium” deal, we must multiply the EPS by a Price to Earnings (P/E) Ratio. There are a few different ways to logically derive what P/E Ratio to use, but I like to use what’s ”officially” indicated within the Yahoo Finance database for the ”Industry” of which a stock would trade. NXHZ has a $100 Million deal for ”uranium” confirmed by the Department of Energy (DOE) as indicated within the link below:
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