متداول اسلامي
عضو مميز
هلا بالحبيب عندك اخر 90 دقيقه
شوف بالله انا عندي شنو اخر 90 يوم
The current environment actually favors BRLC (Olevia) over other TV manufacturers. BRLC has increased prices 3 times in the last 90 days, and has excellent relationships with panel manufacturers to ensure a steady price-protected supply of panels. Additionally, they have numerous consumer report best in class accolades. These are not insignificant awards. They compete with the likes of Sony (SNE) and Samsung.
Rounding BRLC's capitalization to 100 million shares (presently 93,350,000), my calendar year 2008 model would look something like this:
Total revenue: $850,000,000
Royalties (3% of $500,000,000): 15,000,000
Gross profit (15% of $850,000,000): 142,500,000
SG&A: 42,500,000
R&D: 4,200,000 Non-cash (added back): 4,000,000
EBITA: 99,800,000
Operating profit (subtract non-cash): 95,800,000
Interest:18,000,000
Taxes: 29,300,000
EPS: .48
We arrived at a $7.20 target price based on 15 times earnings. This revenue estimate does not include Europe, Latin America, or any other licensing opportunity for the Olevia brand.
The original investment thesis put forth on BRLC was a momentum based revenue model. With hindsight, this model could not finance its growth due to the fact that Chinese receivables were not collectable for 120 days. Shareholders were not willing to live with the negative cash flow, so a model change was inevitable. If there is any question about why BRLC did not factor their receivables, the answer is that they tried and failed. Chinese banks require a 5 year operating history, and $100 million trailing EBITA. Domestic and European banks would only lend against accounts receivable. They would not purchase them. The royalty model was the best alternative.
شوف بالله انا عندي شنو اخر 90 يوم
The current environment actually favors BRLC (Olevia) over other TV manufacturers. BRLC has increased prices 3 times in the last 90 days, and has excellent relationships with panel manufacturers to ensure a steady price-protected supply of panels. Additionally, they have numerous consumer report best in class accolades. These are not insignificant awards. They compete with the likes of Sony (SNE) and Samsung.
Rounding BRLC's capitalization to 100 million shares (presently 93,350,000), my calendar year 2008 model would look something like this:
Total revenue: $850,000,000
Royalties (3% of $500,000,000): 15,000,000
Gross profit (15% of $850,000,000): 142,500,000
SG&A: 42,500,000
R&D: 4,200,000 Non-cash (added back): 4,000,000
EBITA: 99,800,000
Operating profit (subtract non-cash): 95,800,000
Interest:18,000,000
Taxes: 29,300,000
EPS: .48
We arrived at a $7.20 target price based on 15 times earnings. This revenue estimate does not include Europe, Latin America, or any other licensing opportunity for the Olevia brand.
The original investment thesis put forth on BRLC was a momentum based revenue model. With hindsight, this model could not finance its growth due to the fact that Chinese receivables were not collectable for 120 days. Shareholders were not willing to live with the negative cash flow, so a model change was inevitable. If there is any question about why BRLC did not factor their receivables, the answer is that they tried and failed. Chinese banks require a 5 year operating history, and $100 million trailing EBITA. Domestic and European banks would only lend against accounts receivable. They would not purchase them. The royalty model was the best alternative
