Bemax Inc (BMXC)

[Nifler]

Otc's as well as blue chips regularly trade between 40-100 times earnings. Sometimes 40-100 times guidance also. OTC's generally trade at the multiples of guidance based on potential for future earnings.

Take RMHB for example, currently trading near .10. Authorized share count of 900 mil with preferred share conversion at another 1.2 billion so a potential of 2 billion shares yet last q showed a 24k profit. Millions of incurred debt and a horrendous amount of dilution about to show up on the may Q report. But Potential is there because of the recent china deal, so people are will to pay an exorbitant price for a subpenny stock at best.

Now take our authorized shares at 450 mil and do the math. This could easily trade at .25 or greater once guidance has been proved with the 10q and updated fins. It wont take much and with all the irons the ceo currently has in the fire, ( overseas sales, website, amazon, potential in store contracts, word of mouth, etc) profit numbers should start climbing fast. Share price too!
Some, not all, of the float is currently locked by longs which will start profit taking in the .10 range I assume. Then we get some big volume days and huge growth.

Should be a wild ride!!