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jleisure7
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Finance Student at Bentley University
  • Vringo's Huge and Obvious Upside Potential 10 comments
    Nov 23, 2012 8:11 AM | about stocks: VRNG, GOOG

    Vringo (NASDAQ:VRNG) has won a definitive victory over Google; now what? Let's look at one possible method of valuation. With their ongoing 3.5% royalty rate, Vringo stands to receive payments of about $150 million per year for the next four years. Subtract applicable taxes and operating expenses, and we can conservatively say that Vringo will take home about $100 million in cash (this is strictly from the (NASDAQ:GOOG) settlement) per year. $100 million divided by Vringo's 33 million shares outstanding yields an EPS of $3.03. Now take that EPS, and multiply it by the average P/E of Vringo's sector applied technology, which is 17, and you end up with a rudimentary PPS estimate for Vringo. That number? $51.51 per share. I don't know about the rest of you, but I struggle to see how this stock could go anywhere but up.

    PS, before anyone tries to say i am just trying to pump the stock price, go over my numbers yourself. They are accurate and represent a factual means of approximating PPS.

    Disclosure: I am long VRNG.

    Themes: Patent, court, valuation Stocks: VRNG, GOOG
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Comments (10)
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  • jake gittes
    , contributor
    Comments (85) | Send Message
     
    33 million shares outstanding?..go back to your room and clean it
    up dude.
    23 Nov 2012, 09:01 AM Reply Like
  • jleisure7
    , contributor
    Comments (4) | Send Message
     
    Author’s reply » http://yhoo.it/QiM7vk

     

    Go ahead and look where it says "Share Statistics."
    Maybe you should do your DD before you make comments like that.
    23 Nov 2012, 10:47 AM Reply Like
  • superdaemon
    , contributor
    Comments (196) | Send Message
     
    You are embarrassing yourself. The real share count is over 100 million when you do a thorough count. Yahoo finance is not accurate.
    23 Nov 2012, 10:55 AM Reply Like
  • superdaemon
    , contributor
    Comments (196) | Send Message
     
    Please check your facts before posting so ou don't embarrass yourself.
    23 Nov 2012, 10:48 AM Reply Like
  • jleisure7
    , contributor
    Comments (4) | Send Message
     
    Author’s reply » I did, and that's why I posted this article. Even with a VERY conservative P/E of 3 to 4 Vringo is way underpriced.
    23 Nov 2012, 11:00 AM Reply Like
  • Chung Yen Wong
    , contributor
    Comments (62) | Send Message
     
    dude you need to look into the 8K seriously. Look for the fully diluted share count.
    23 Nov 2012, 11:57 AM Reply Like
  • jlf75
    , contributor
    Comments (157) | Send Message
     
    Well, other posters had Vringo past $100. a share, so $51. or $30. still lots of upside any way you look at it. Buy it if you can below $5. Monday.
    23 Nov 2012, 04:45 PM Reply Like
  • superdaemon
    , contributor
    Comments (196) | Send Message
     
    Look I'm long here but "buy if you can below 5" might be pushing it on the optimism department a bit. Will probably need news to get above $5
    23 Nov 2012, 06:47 PM Reply Like
  • asia24
    , contributor
    Comments (141) | Send Message
     
    Guys please give this guy some slack. He's just a Finance Student at Bentley University. (heaven help us if he makes it to a wall st. firm.)

     

    Jleisure7- Do some proper DD and not accounting 101. and come up with a hypothetical number of $51.51PPS.
    The market factors in a lot more then P/E ratios, EPS share counts. (which you are off by roughly 70mm) and lastly FYI Vringo is not in a "Applied Technology sector" so you cant apply the 17 forward multiple.
    You can start your next blog with this..http://bit.ly/R8d3Ot
    GLTY
    24 Nov 2012, 11:40 AM Reply Like
  • Bad Banker
    , contributor
    Comments (26) | Send Message
     
    Go to 10k...Nov 14 th.

     

    Equity section...Common shares.

     

    150,000,000 authorized and about 81,500,000 outstanding. Don't take the numbers posted by Yahoo...always wrong.

     

    Your method was fine...just your number of shares was off. Always go to Edgar and use latest filing.

     

    Thanks for posting, grade C+
    24 Nov 2012, 06:54 PM Reply Like
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