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Novation Companies, Inc. Message Board

  • rooky_is_lucky rooky_is_lucky Feb 22, 2011 7:05 AM Flag much is an income generating asset like Novastar/Streetlinks/Advent worth?

    It is expected Novastar will earn over 9M in 2011, and after the recapitalization that equates to .12 a share.

    So what is an asset worth that has the ability to generate over 9M annually in income in 2011? How about that same asset that is projected to generate 14.5M in income in 2012?

    To draw a comparison, to generate 9M at a 3% interest rate it would require a 300M investment. BTW, a 3% interest rate in todays environment is not too shabby. So is that to say Novastar/Streetlinks/Advent might be valued at 300M? How about if it's an asset that's growing faster than normal? Is that to say it could be worth more than 300M?

    Bottomline, Mr. Market will determine what it's worth. At just .46 a share Mr. Market currently has Novastar/Streetlinks/Advent valued at 41.4M, or .46 X 90M shares.

    With earnings expected to grow 50% or more per year, Novastar should be considered as a growth stock. I guess Mr Market hasn't figured it out YET, but it WILL.

    Richard Morris
    Va. Beach, Va.