Clickable Enterprise (fka CKEI)

[mike306oh]

Re: "Anyone now how they determine the value of a company on the exchange. And since this company has a product how come its value is far less than companys that current produce nothing but a Big Maybe and a Dream. Anyone"

(Posted on RB)

For an average OTC:BB stock company that already has a product, the best indicator is the Price/Sales. The average P/S ratio is between 1.5 and 2. If the company is a experiencing a good Y over Y, and Q over Q growth (e.g., over 50% Y over Y revenue growth), the P/S usually goes as high as 10. For "sexy" stocks in a sector that is expected to grow fast (e.g., energy, and especially renewable energy; nanotechnologies; biotechnology, etc.), the P/S ratio can go as high as 1000, and with a good (professional) pump much higher.

The P/S ratio here, right now it's 0.74:

http://finance.yahoo.com/q/ks?s=CKEI.OB

Judging it from the average BB stock, the valuation here should be between 2 to 3 times higher. Given: (i) the latest PR's (the fact that the expected Y over Y revenue growth it's expected to be at least 100%, while the Q over Q growth it's 150%, (ii) the fact that the company opperates in the energy sector, and (iii) the good potential for future explosive growth, the valuation should be much higher. Based on the above, a P/S ratio of say 10 (a 12 to 13 fold PPS increase), it's not much to ask for, providing that: (i) the ungoing dilution can be kept under control, and (ii) next financial numbers show a move toward at least positive operational income. Once (and if) the company would be showing a positive net revenue (positive EPS), while not increasing the OS too much, the valuation could go even higher.

Talking about the poster's comment: "its value is far less than companys that current produce nothing but a Big Maybe and a Dream," he is right. Check out how an efficient (shamelesly misleading, if anyone asks me) pumping could jump the Price/Sales ratio of 36,154 (yes, over thirty six thousand!), just follow the XSNX saga. It's a (fake, if anyone asks me) thin film solar cells that has a single employee (not qualified for that job), that along with his self appointed energy guru (Jeff whatever), are promissing the moon, and somehow people are buying into their young kids bedtime story.

Disclossure: CKEI in my book it's a long-term keep (and sooner rather than later, I hope to be well compensated for my patience).

PS: I see someone added my name to be an "assistant." While I'm flattered by it, I must advice you (whomever you are) that once my renewable energy R&D company starts moving again (which I hope to happen very soon), I won't be able to spend much time (if any) posting here. Hence, you might consider an assistant from among the older posters here.

Mike