Hello. Is anyone looking at Contel, which is going to be RTO by YuuZoo? The issue of new shares to YuuZoo is at 5 cents and values YuuZoo at S$582 million. YuuZoo has been reported to earned USD7 million in 2012, so that pegs the PE at around 65X. Reference:
www.nextinsight.net/index.php/story-arch...mes-on-track-for-rto
In 2013, the net earnings is supposed to be much higher. Let's say 50% more, which is USD10.5 million, resulting in a PE of 45X current year earnings (forecast).
Looks expensive compared to conventional businesses. How to get a handle on this. Obviously, the investment bankers have priced the RTO somewhat rationally or the stock will dive in trading. But still... with a PE of 45X.... Unless the FY2013 earnings is much more than 50% growth. Even at 100%, the PE is about 35X. That's why I am asking if anyone can shed light on this ....
Last edit: 10 years 11 months ago by niadmin. Reason: Contel has been renamed W Corp
Six months ago, I said the stock was expensive at 7.8 cents. The stock has since plunged to 5.6 cents, a loss of 28%.
I also had a forecast of 2013 earnings.... but in The Edge article this week, the 6-mth earnings of Yuuzoo was reported to be only 676K USD. Only those peanuts?
It's a bad fall compared to US$5.5 m in full year earnings of 2012!
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