Cotton & Western Mining Inc. (CWRN)

[wrongjoe]

If you look at the 36 month chart on pinksheets.com, you can see where I got the volatility comment from. But I realized it was a fairly irrelevant comment soon afterwards because they reverse-merged into another company and the prior company's performance doesn't matter.

http://www.pinksheets.com/quote/chart.jsp?symbol=CWRN&duration=2-6-9-0-0-536

As for Labwire, I just did the math assuming 50% growth each quarter. At the end of all that growth, .10 would be the value relative to peers. Now share price always anticipates growth. If you think they'll have more than 23 million in revenues over the next year and/or can achieve greater than a 15% operating margin, then yes, they are undervalued at the current price. I think my estimates are generous given their revenues for the last quarter were only 800k. I DO NOT think Labwire is currently discounted for being a pink stock. It's trading at the price it would settle to on a major exchange with it's growth rate. There's advantages and disadvantages to being a totally transparent company. You're going to get less speculation and that is generally what drives a pink stock. Labwire is a safe investment, I think, but there's not a lot of mystery there. I still say .50 by next summer if they show they can land some of those big contracts. A safe investment with a decent chance of being a 5 bagger in one year is a pretty rare find. Maybe more bags if you sell on a short term run up after a big announcement. A pink stock that behaves like a major exchange stock is also a pretty rare find.

Why Labwire's PPS is so low along with a lot of pinks stocks is the share count. 150 million shares is a lot for a young company. The revenues need to grow incredibly fast for the share price to appreciate quickly. A low float will make a stock more volatile, but won't increase the intrinsic value. I sold out of NDOL (too late, of course, but not at a loss) because I eventually decided that the increased share count with the merger made it a VERY different stock than it was pre-merger. Everyone who hasn't left says they are still in it for the same reasons, but they can't be. At least, they can't have the same expectations. It's just not possible when your share count goes from about 250 million to 600 million.

One main reason I like CWRN is the attractive share structure. When CWRN proves to be the real deal - I think it will, but we'll see - this is going to rise fast and sustain fairly easily. I'm at 150k shares right now, but lookin' to add when I can. Funny, I bought my first shares at .55 and now it's exactly 1/10 that price. If I'd only known....