Zaldiva, Inc. (zldv.ob)
Media
- Solid Financial Footing: Zaldiva holds the outright title to its Fort Lauderdale property, having raised the money to purchase the building and lot through a private placement. Since then, the company has funded the construction of its flagship facility that is expected to open its doors to the public in early September 2006. The building has not yet been appraised, but based on similar sales in the vicinity, Zaldiva estimates the current value of the property at approximately $2 million. In addition, Zaldiva also owns an inventory of collectibles worth an estimated $250,000+. Due to the nature of both the real estate and collectibles markets, it is a realistic assumption to expect both of these substantial assets, unlike inventory in many other sectors, to continue to appreciate.
- Fast Moving Sector: the Specialty Retail sector has experienced steady growth in recent years, generating more than $1.3 billion in sales in 2005. The comic book and collectible sector has developed into a huge segment of this industry, driven by the tremendous impact of successful franchises. According to the NPD Group, this effect can be clearly witnessed "through the incredible success of franchises such as Star Wars." The positive outlook for this sector is supported by the strong performance of the comic book market that generated $300 million in 2003, but with additional licensed categories factored in this figure skyrockets to $2.6 billion.
- Low Barriers to Entry: The collectibles market has undergone rapid transformation with the advent of e-commerce, but this adjustment has yet to filter completely through the sector. Currently, the market remains highly fragmented, with many small dealers and single-site retailers. In addition, a large portion of the industry players focus on a single collectible category. As a consequence, the sector appears ripe for the emergence of growth-minded competitors that are capable of utilizing the marketing power of the Internet in tandem with profit-enhancing economy of scale.
- Superb Margins: One of the reasons why the smaller retailers have been able to continue to participate in this sector is the extremely high profit margin attainable by the sale of collectibles. Zaldiva estimates that its margins range anywhere from 35% to 1000%. In addition, the inventory that the company holds, currently estimated at $250,000, can reasonably be expected to gain in value with the passage of time.
- Strong Outlook: Zaldiva's flagship location is located in a high-traffic area of Fort Lauderdale. County statistics estimate the traffic count at Commercial Blvd. and Interstate 95 at over 60,000 cars every day. Based upon comparison with other retail establishments in the proximity, Zaldiva estimates that the average sales per square foot of retail space is between $600 ad $1000. Based upon a conservative estimate of $700/ft2, Zaldiva expects annual sales to top $1.75 million. With these sales levels and the current stock structure Zaldiva would generate $.10 or more in earnings per share. Given these projected earnings, a valuation based on a relatively conservative Price-to-Earnings ratio of 20 would result in a share price in the $2 range.
Company Contact Information
2805 East Oakland Park Blvd
376
Fort Lauderdale, FL, 33306
USA
- Phone:877-925-3482
- Fax:n/a
- E-mail:press@zaldiva.com
On-line contact form
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