DNA Brands Inc (DNAX)

[Ed the Trader]

"DNAX survive as in PPs maintaining and holding above 001 with this SS, could care less is company is profitable, just because DNA sells make profits 1 million don't mean PPs will hold above 001 with 8 to 10 billion O/S or more O/S"

Okay... I just wanted to understand your use of terms.

Clearly, because corporate management and shareholders care about two completely different things, what you say is understandable.

Your PPS of $0.0010 seems a bit arbitrary to be viable as a threshold for SURVIVAL of a ticker, but that's ok... let's go with that.

For the PPS of DNAX to hold at $0.0010, the market value of the company would have to be... once any hype that got the PPS that high wears off... 10 million dollars:

10,000,000,000 shares × $0.001/share = $10,000,000

If the book value of DNA got to one million dollars, which is quite obtainable, that would give DNA a market to book ratio of 10:1.

That is not a ratio that is not seen from other companies, but it is still pretty steep.

Bump the book value to 2 million dollars, and the market to book ratio drops to 5:1 which is very common among companies performing well.

Therefore, I don't see $0.0010 as an unreasonable stable PPS for DNAX... assuming they get a couple million dollars in annual sales behind them AND address the EIGHT MILLION DOLLARS of debt in the Series G Preferred stock.

As things stand right now, DNA Brands has total liabilities of about $1,900,000 outstanding (per Q3 report) PLUS the $8,000,000 in Series G Preferred stock.

So, obviously something in the magnitude of 10 million dollars of debt and liabilities has impact on valuations.

None of that is insurmountable though. DNA just has to sell a large amount of product.