Pedevco Corp. (PED)

[ODINHOUSE]

The whole deal seems interesting. If the have 5 rigs generating $7 million per year, that would give us $35 million in revenue. If profit margin is 45% that would give us a profit of $15,750,000. Now if we took the $15,750,000 and divided by approximately 42 million (shares outstanding), it would give us an earnings per share of 38 cents per share. Take this amount and take a multiple of let say 10 to 15. Add Amex listing and you have a stock with the potential of trading at $3.80 to $5.70. This is not to say what the abrasive rig will generate once it becomes commercialized.