RJD Green Inc (RJDG)

[tedpeele]

PE of 1 here & tremendous news just out on the convertible debt, which was keeping some folks at bay. Mid day news will catch folks by surprise, but that gives an opportunity here for those that are alert.

PE of 1/5 using next years projections.

To put it into perspective, a current PE of 10 would put the price at .048 vs current .006:

800k/165m = .0048 EPS

Using next years projected earnings and increased shares to 200m and a PE of 10 would put the price at .28 vs current .006 for a gain of 46x your money:

5.3m/200m = .0278 EPS

If you prefer a Price to Sales calc, applying a ratio of 6 (common for software (which is what is accounting for their increased earnings):

4th quarter software revs appear to be 700k so will use $2.8m

Sales/Share = 2.8/165m = .017
if P/S = 6 then Price = 6 x .017 = .102

And, next year they are projecting over $10m in sales!

Check my math - let me know if I've made a mistake.

This may be the diamond in the rough that is so hard to find in penny land. It has been hidden in the fact that it is a holding company, and is new, and nobody knew what the IOSoft division was capable of (except the CEO!) until just a few weeks ago.

Postings reflect the undiscovered status here.