Guidance and value : where is Dakshidin going?
in response to
by
posted on
Mar 01, 2008 01:03PM
Edit this title from the Fast Facts Section
In order to try to look into the future for Dakshidin's stock price, we could look at a similar successful start up company like Worldwater and Solar Techs Corporation ( WWAT ).
This company is an Intl. Solar engineering and Water management company with unique,high powered solar technology providing solutions to water supply and energy problems.
It is now traded at around $ 1,55/sh on a market cap of about $ 292 million and a float of about 188 million shares.
The stock was trading in the $ 0,20 range in october 2006 and shot up to about $ 2,5/sh 10 months later,i.e 12 times higher.
Price to ratio valuations ( PSR )
Uses of the PSR
As with the PEG ( Price/Earnings to Growth )and the YPEG ( Year-Forward PEG), the lower the PSR, the better. Ken Fisher, who is most famous for using the PSR to value stocks, looks for companies with PSRs below 1.0 in order to find value stocks that the market might currently be overlooking. This is the most common application of the PSR and is actually a pretty good indicator of value, according to the work that James O'Shaughnessey has done with S&P's CompuStat database.
Now, I keep telling this board that Dakshidin is going to be an even better story simply because we have a very large market ( Worldwide )potential and a leader position in our ability to pump water and produce electricity 90% of the time in 90% of the world (due to low winds requirements) as proven by accredited tests and soon ( 2nd and 3rd quarter 2008) purify and desalinize the water by flash and osmosis processes.
Dakshidin's current price to sales ratio ( PSR ) is in my estimates as follow :
(66,000,000 shares x $ 0,19) + debt /$50,000,000 revenue in 2007= 0,2508
One unknown being the debt factor, so I have made an approximation used here $10,000,000 as a reasonable debt basis so now Dakshidin's PSR is 0,4508 !!!
We could even almost QUADRUPLE the debt and come to a PSR of less than 1! SO THIS IS AN EXCELLENT PSR!!
This number is GROSSLY low.
Why ?
If we compare with other energy companies like ( Nov 2007 figures) :
PSR ( price to sales ratio )
FSLR 44 ( First solar )
ESLR 16 ( Evergreen solar )
SPWR 15 ( Sunpower )
Now,the above named companies have revenues and profit streams that are expanding at a high rate...but they all started with the same idea one day of creating value with an alternative and green energy.
It is this premium market valuation multiple that suggests the importance of alternative energy thence a look into the near future of Dakshidin Corporation. Wall Street tends to be a leading indicator and keen in its ability to identify secular trends.Wind power is now at the dawn of a new day. Major trends command premium valuations and reward venture capital with attractive exist strategies. Wall Street rewards cash flow growth fueling further venture capital funding that in turn, fuels the flow of intellectual and financial capital. The value migration measured by price-to-sales multiples and illustrated by A. Slywotsky in his book Value Migration provide a framework to gauge the significance of trend towards alternative energies. Capital gravitates to the business model that creates economic value and is measured by a stock’s price-to-sale ratio. By that measure solar and wind stocks is where the value is headed.
Thus,in my view folks if you follow me so far,the bottom line is that DAKSHIDIN IS BEING GROSSLY OVERLOOKED BY THE MARKETPLACE BECAUSE OF ITS START UP STATUS. IT IS AKIN TO HAVING A DORMANT HIDDEN 1000 CARAT DIAMOND IN YOUR BACKYARD waiting to be discovered by the lawnmower boys during spring grass clipping.
High market valuations attract research funding and brain power. Rising oil prices, rapid industry growth, and high public market valuations of solar and wind companies, should act to attract further venture capital funding of alternative energy companies. Increased solar and wind funding should translate into increased research and talent migration that could improve solar and wind efficiencies.
Dakshidin has a giant market ahead with real needs for clean water and affordable electricity and it won't be long now till it attracts major funding from serious institutions which in turn will change this ridiculous Price to Sales ratio that we know today to many multiples from here.
Dakshidin will soon prove its sustainable economic foundation with high revenue growth and increased gross and operating margins.
The above statement is made by me solely out of my own research and I have not been paid nor been asked by anyone to produce the above text. I also forbid anyone to use the above claims ,which may contain inaccuracies to make any investment in Dakshidin.
DO YOUR OWN DD FIRST!
your comments are now welcome folks.