Per the Q3 earnings release, Sunwin is expecting RECORD RESULTS in 2009, so I thought I would calculate a possible value range based on the revenue and income trend we are seeing.
On the low end, let's assume they equal last quarter's net income for each quarter of 2009:
$633,000 x 4 = $2,532,000 net income / est. 100,000,000 OS = eps of .025
If we see RECORD RESULTS as they say, let's assume that figure is 50% higher, or an eps of .038
At the very low end: .025 @ p/e of 20 = $0.50
If the 50% growth is assumed: .038 @ p/e of 20 = $0.76
At 50% growth, a higher p/e of 40 to 60 would be possible:
.038 @ p/e of 40 = $1.52 .038 @ p/e of 60 = $2.28
Now let's assume mega growth, say 100%, with the high end p/e of 60:
.05 @ p/e of 60 = $3.00
This is a wide range, but I believe a forward-looking valuation could fall anywhere in the $0.50 to $3.00 range. At the high end of the range, we're looking at 10-bagger potential here from the current pps.
The annual earnings report in August should give us some better guidance, but no matter how you look at it, we're undervalued.
SUWN management needs to contact Yahoo and get their key statistics displayed. I don't think the average OTC trader is going to bother wading through SEC filings to calculate the valuation ratios for himself.
I have e-mailed them about this (and other things), but they never responded.