OTCQB:WAST - Post by User
Post by
jamesb14on Nov 12, 2017 7:25pm
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Post# 26948458
Revised Expectations
Revised ExpectationsWith declining advertising revenues per user, the share price of MEET just got slammed this week. I've done a bit of a reset in my financial estimates and here's what I've come up with for value:
- Operating earnings for the past 9 months are $0.20 per share, excluding income tax gains, depreciation & amortization, and acquisition & restructuring expenses.
- Revenues are increasing but profits aren't keeping up due to the lower margins on advertising revenues
- Adjusted earnings based on my calculations (I don't buy into the idea that stock-based compensation should be added to calculate adjusted earnings) will be around $0.25 with the higher interest expenses on loans in Q4
- Adjusted earnings in 2018 will be around $0.30 (with the LOVOO acquisition and new revenues from gifting, offset by lower advertising revenue per user)
- Then I see a modest growth rate of 15-20% in income for the next 4 years (this is pretty conservative but the company will have to start paying taxes at some point)
Based on these assumptions, I see a share price between $10.41 to $15.74 in 5 years for a return of between 355-587%.