On4 Communications Inc (ONCI)

[DewmBoom]

$ONCI: What is P to RAR Ratio (PRAR): Invented by Dewmboom (Maybe, have not checked yet if it exists yet)

P: Market Value
RAR: Revenue (R) + Account Receivable (AR)

While revenue is important, it is important to take into consideration AR and not ignore it from the equation. AR is essentially a sale that has not been paid yet, but has the possibility to be paid in full.

The lower the PRAR, the better. A PRAR of 3 or lower for a growth penny stock is considered to be excellent, as the market value is very close to the total potential sale done by the company, taking into account the potential growth.

Let's now look at PRAR for ONCI for FY2018:

P or MV: 8.6 millions as of today based on a closing price of 0.0019
RAR: 9.4 millions for FY2018 from annual report
PRAR = 0.91, which is very low.

At a PRAR of 3, the MV should be at 28.2 million dollars. For a MV of 28.2 million dollars, the stock price should be at 0.0062 for a PRAR of 3

After the CEO reduces the OS by 1.4, the MV based on the above analysis would be 5.89 million dollars, and PRAR of 0.63. That will put the stock price at 0.009 for a PRAR of 3

In Summary, after the CEO reduces reduces the OS by 1.4 billion shares, the PPS should be close to 0.009 or higher. Before then, it should be at 0.0062 or higher.