Sunergy, Inc. (fka SNEY)

[blue dog]

Look at post 85464 (http://investorshub.advfn.com/boards/read_msg.aspx?message_id=100509954) and the related string of posts.

Share value should depend on net income, plus whatever P/E ratio one assumes. As I understand it, P/E ratios typically range between 20 and 25; as I understand the formulas, the variable are as follows:

EPS = (net income - dividends on preferred shares)/shares outstanding

P/E ration = share price/EPS

Here are what I understand to be the known variables:
dividends on preferred shares = $0 (hope I am right)
shares out = 2.1 billion

By my figuring, net income of $20 million would give the following share prices: $0.1905 (@ P/E of 20) and $0.2381 (@ P/E of 25).

If they make $2 million, one divides those numbers by 10. If they make $200 million, one multiplies those numbers by 10.

Maybe for the math-challenged, it would useful to have these numbers:

Assuming P/E ratio of 20 and 2.1 billion shares: share price = $0.0095 for each million of net revenue; and

Assuming P/E ratio of 25 and 2.1 billion shares: share price = $0.0119 for each million of net revenue.

How's my math/arithmetic?

P.S. The current share price appears to have the following built-in assumptions about net revenue: $690,000 (@ P/E of 20) and $555,000 (@ P/E of 25).