The logic of P/E ratio does not apply to a B.B. stock trading @ pennies without any positive earnings. So if a equity is at pennies per share without positive earnings and having a P/E ratio currently way beyond it’s share price, they do not have to earn millions to reach a $5 pps. But yes, they would have to sell millions to sustain a dollar + share price. There are equities that have negative earnings that do trade in multiples way beyond their negative income.
As everyone here has witnessed this equity popped from .06 to .24 and then from .24 to .41 on basically little revenues, no PR regarding new sales, a new CEO, and a lot of hype, rumors and speculation that all concluded, might result in new contracts equating to increased revenues and a higher share price. Has that happened? The answer is no, but the sentiment of this board says; not yet.
So if a equity can pop 6 to 7 fold its negative earnings and zero P/E. It is quite possible that it can pop 4 fold from it’s current pps to a dollar + on the same hype rumors and expectations. Now throw in the momentum that this equity is building and you have all of the ingredients of a ticking time bomb with a fuse length that is anyone’s guess.
So until we get to the point when LQMT starts selling millions to justify a P/E ratio worth its pps, I would be more concerned with the ticking time bomb and what is it going to take to light the fuse and watch it explode.
I see the bomb going off first before the P/E becomes a factor. Just my opinion. My opinions are worth less than the P/E of LQMT.
Good luck to all
