I enjoy your enthusiasm Amac !
First, the problem with PE ratios is that the higher the P/E, the more a company's price is "INFLATED."
Using a P/E of 12-15, is simply industry standard for attempting to put a realistic valuation on a company.
Remember what this actually stands for: 15 years before your shares are actually profitable.
Accordingly, pointing to TSLA etc. is "fun" if you simply want to talk yourself into supporting an unrealistic figure for PPS - but I think most people generally agree TSLA is (a) overvalued, but (b) a much much much more legitimately established company than POTN.
By way of example: If you use a P/E of 100 you can support a pretty high price -- doesn't mean its realistic.
Second, I believe the question I was trying to answer was "when will the stock get to $1.00?"
With regard to the 10% profit margin - as I stated myself, this should increase with time -- but that was the essence of the question -- how much time? If the company wants to keep re-investing revenues into the company by growing the US market and moving into other markets -- this doesn't bode well for the resultant profit margin in the next few years. On the other hand, if the company dials back the re-investment and marketing, the profits go up in the short-term, but the word doesn't continue to get out and the brand recognition they are trying to create evaporates.
For what it is worth, by my calculations in the earlier post, the stock seems to be trading at a very low multiple of earnings currently, so it could probably pop to 3-5 times where it is right now. IF/When it does, I'll be happy to take advantage of the irrationality and take some profits. This is quite different than tricking oneself into thinking it is "worth" 3-5 times the current value.
Bottomline: I still think POTN can grow steadily, just not at any crazy pace that results in sudden Bonanza money of $1.00+/share -- UNLESS the market helps us all out by acting extremely irrationally - like the stocks you sited - including TSLA which is extremely overvalued currently IMO.
I'm actually hoping we do get some crazy price jumps - its the whole reason I bought the stock.
If I only wanted safe stocks I wouldn't be playing the OTC craps tables.
Go POTN ! Come on roll an 11!
AI
