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SR Telecom Inc. (SRXA) Message Board

  • PTangRing PTangRing Feb 10, 2005 12:26 PM Flag


    Crush or teamrep, whatever your name - do you know what Enterprise Value is? Value does not disappear with the issuance of shares. They will be reducing debt and increasing equity. Net effect is Enterprise value.

    As most value based on EV/Share price in some form or another, this is key and why this is an undervalued speculative play.

    Whatever number comes through going forward in revenues $120 - $170 million will support the EV of about $100 million. In fact, once things settle down, it's reasonable to be selling at 4-6 EV, depending on growth and going forward. Also depends on how well the cuts have been and how they are positioned to CFP and profits.

    But, as you seem to be hollering "fire" "it's over," I suggest that you are a cheap basher, who doesn't come close to seeing the complete picture.

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    • Correction in my prior post.

      It would be reasonable for Enterprise Value to be as high as 4 x Revenues or even higher.

      So if you take the low numbers of $120 million x 4, you get $480 million / $100 current EV, then you have a potential 4 bagger here or more, by conservative valuation metrics.

      • 1 Reply to PTangRing
      • all fine, but srxa is priced for bancruptcy. and even though they might get the 80 million, the company still produces substantial losses quarter by quarter. i expect them to run through that money within 3 quarters. you know about managements abilities to predict the future. or better said their failure to perform. now the company faces insolvency and the same bums still run it! i have been through 4 bancruptcies and believe me they had better numbers than srxa does. i have quite some position in this company so what the heck are you talking about by the way. basher? more like a critical voice to scatter the bullish believes that everything is in order. this is mon the edge!