-------------------- “Money itself isn't lost or made, it's simply transferred from one perception to another." Posts: 540 | Registered: Mar 2006
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posted
am I being a little too greedy? I am hoping .01 ... with the E coming off and good news I think it might just do it .... Maybe I am just dreaming.
-------------------- Learning The Way Of Life.... Posts: 658 | From: Phoenix, Arizona | Registered: Dec 2005
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posted
I think you're in the right ballpark. As I calculated in my first post on the 29th, the dilution should have brought the base value of the stock down to 0.012. The company's assets are four times its long-term debt (other than the derivatives which are based on the stock price) and SEVI is continuing to grow. If the price goes up somewhat gradually over the next week or two rather than simply spiking and falling, it should be able to build support at more than 1 cent.
Posts: 58 | Registered: Sep 2006
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This predicted increase appears to be supported by their expansion plans. SEVI’s Next Hire office in Houston demonstrated a 131% increase in Revenue for ’05-’06, and Next Hire just opened a new office in Austin in June. Since Next Hire’s revenue currently comes from the Oil/Gas industry (their major clients are Shell Oil and Staffing Technology), I expect this revenue to remain strong in the near future. SEVI is currently predicting a 70% increase in Next Hire’s revenue for the current year: from 1 million to 1.7 million. (Next Hire receives its revenue as payments from the hiring company equal to 15-25% of the annual salary of the hired individual.)
Furthermore, SEVI’s consulting division has just undergone a makeover that has already allowed them to win several new contracts (prior to this change, their major client was the State of Texas government). They have recently become a managed service provider which allows them to provide their computing services via remote access and thereby become much more efficient, with predicted gross profit increases. See the below description of this recent change:
In its annual report, SEVI states its intention to double its consulting and Next Hire sales force this year. In addition, they plan to hire 8 or more Microsoft-certified consultants and 8 or more Next Hire recruiting professionals this year. This hiring would result in a 64% increase in their employees, from 33 to 54. Their stated reason for these additions is that the demand for their services outreaches their current manpower.
If their gross margins remain stable at 64% of revenue, then they’re predicting 4.3 million in gross profit for this year. Divide 4.3 million by roughly 300 million shares (this number includes additional likely dilution since the 250 listed in the annual report) and you get a value of 1.7 cents/share.
Although I will refrain from predicting how the stock price will respond as this is still a penny stock, I think 0.017 is a conservative estimate of SEVI’s real value based on their current number of shares and their predicted revenue for the coming year (0.012 based on revenue from the past year).
posted
Nope, not usually. Before it begins its climb up at times it is. Other than that I've never had a problem selling before during and after its peak. I'm holding 500k shares now and look for some good dough in the near future. Gl all, gotta go to school.
-------------------- I buy fast and sell faster! Posts: 2018 | Registered: Jan 2006
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-------------------- “Money itself isn't lost or made, it's simply transferred from one perception to another." Posts: 540 | Registered: Mar 2006
| IP: Logged |
-------------------- “Money itself isn't lost or made, it's simply transferred from one perception to another." Posts: 540 | Registered: Mar 2006
| IP: Logged |