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Re: Phil the Order post# 64178

Tuesday, 09/05/2006 10:44:23 PM

Tuesday, September 05, 2006 10:44:23 PM

Post# of 311057
Valuation metrics often give growing small companies a multiplier of between 3 and 4 based on revenue. That's because these companies often don't have earnings, upon which one could ascribe a price earnings ratio.

Bottom line - a penny stock - with these projections of revenues - if they are to believed - should be selling at huge multipliers of curent share price.

Of course, the "if" is the fact that we are in pinkie penny land and so many are questioning whether the revenues really exist. There is a price to be paid for uncertainty and right now that is .084. With certainty is the price, $1 or more?