Stealth Wealth

The following are financial highlights for the trailing twelve months (ttm).

Profit margin is at 45.18%, which is pretty good, but I would like to reach 50%. To achieve this I’ll need to work on some cost cutting measures for next year.

I’m going to keep up with ROA, but I’m not using the correct formula which is Net Income divided by Assets. When I use the correct formula I come up with over 100% because my Net income is almost the same as my assets and I don’t see that as a clear reading on how my $8k in assets perform. I’m using Net Income from investments divided by Assets to get the 5.66% you see below. This will probably decrease in the future because I will continue to put into my 401k, which is included in the assets, but I won’t have any income from my 401k. The only way to receive net income on investments is to sell stock and receive a realized gain or receiving dividends.

In quarterly earnings growth I compared Q2 to Q3 (2 previous quarters). It is such a high percentage because I paid my jeep off in Q2 and left me with low net income compared to Q3.

I readjusted the P/E ratio to 20 because of the growth I plan to have in ‘08. Market cap of Stealth Wealth Inc. is $173,138.20 with a share price of $17.31

Key notes

1. Issued 10,000 all to myself.
2. A P/E ratio of 20 is constant forever to calculate share price.
3. Share price was calculated by the following calculation: 20x$.87 = $17.31; P/E=20 and EPS=$.87
4. The total market cap. for Stealth Wealth Inc. is $173,138.20 (10,000 shares multiplied by $17.31 share price.
5. Book Value per share is Asset-Liabilities divided by 10,000 shares ($-2.10)