On4 Communications Inc (ONCI)

[zombywolf]

What a crock. Let me bring you to the real world of stock analysis. His real (as best as the fins offer) conversion rate of A/R's to paid seems to be at best, (the fins are not audited) maybe, (fins are not audited) at most, 15-20%. That puts the number at maybe around $700k. You have to subtract expenses and taxes (no taxes because there are no profits to tax), so you subtract just expenses from the real revenues. The problem is that all expenses are over $3 million dollars (year 2 of Stevie costing the shareholders huge expenses vs closing the doors). That puts net revs to come up with an EPS at a negative $2.3 million. Divide that by the 4.5 million shares and you get an EPS below zero. Whatever P/E multipler you want to use is meaningless, because the SP would still be zero. The stock is massively overvalued and will correct.