Year end resultsYear end financials were out on May 18th last year, so I would expect something similar this year. However it should be fun to speculate on the results before they are announced. The company indicated "Revenues for each month for the past four months have been in excess of $850,000 (U.S.). Gross Margins after cost of sales in Q3 were 18.5%. Apply the same margin in Q4 on sales of 2.55 million and that would result in a margin of $472,000 less other expenses of about $300,000 and you are left with $172,000 profit before taxes. From Q3 "Income taxes have not been provided in the accompanying financial statements due to realization of previous net operating losses."
Profit per share would be about 1 cent per quarter. if that can be maintained or built on through next year 4 cents plus will be achieved. Apply a multiple of 7-10 times and a target of 28-40 cents is achieved. The numbers could get even better with better sales growth and another acquisition. It should be noted that the float is small as insiders own 10.5 million of the 19 million shares outstanding. Book value in Q3 was 18 cents as well. Any comments are welcome.