They had $805,041 in Billings in excess of revenues, a Liability.
When the complete this (these) installations, book value will turn posiitve, to $214,750.
They have $2.6 million in back log, according to Laky on the 12/14/10 PR.
Assuming, conservatively, a 50% gross profit, then equity will grow from $214,750 to (214,750 + (.5($2.6 mil) = $1.5 million.
Assuming 1 billion shares o/s, market cap. is $2 million.
2011 just started, assuming they can double sales from $2.6 in 2010 to $5.2 in 2011, and 50% gross profit, then book value will grow from $1.5 to (1.5 + (.5 times 5.2)) = $4.1 million.
Let say gross profit is 60%, then book will grow to $4.9 million.
This is the projected book value at the end of 2011. Add a growth factor of a conservative 7 times, and we get $34 million.
$34 million, one bill. shares O/S, valuation is .034.
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