RE: Double From Here? For the most part, I agree with Jennings' assessment, except of course that the "earn-out" charge they refer to as "one-time" will actually (potentially) be there for 3 yrs, not just 2012. Nevertheless, underlying operational earnings are growing rapidly, and when the earn-out bonuses are complete, there will be an earnings jump of ($10.5 million divided by 45 mill shares) about .24/share.
Just a few words about the Bertram transaction, at least the way I see it:
Last July, Energold agreed to buy Bertram for $15 million (8 mill in cash, balance in shares) plus a variable amount in earn-out bonuses, (depending on the performance of the acquired company over the next 3 years). If Bertram meets all of it's performance targets, EGD will end up paying an additional $31.5 million in earn-out bonuses, making total consideration for the purchase of Bertram $46.5 million. It's too early for me to make an accurate estimate of Bertram's annual contribution to total earnings for Energold, but based on Q1 earnings of $5.5 million for the energy division it seems fair to assume that it will be $8-10 million annually (Q1 being the strongest quarter of Bertram's yr). If this assumption proves true, then they paid about 5 times earnings for Bertram, which sounds like a very good transaction to me.
By the way, the earn-out bonuses are payable 50% in cash, and the balance in shares or cash, at EGD's discretion, so in the above scenario, EGD's total cash consideration would end up being only $23.5 million, along with about 2 million shares.
Hope this wasn't too long, and I'd welcome other people's thoughts.
GL all.