PCT Ltd (PCTL)

[skitahoe]

Right now CNBC has us at under 530 million shares outstanding, let's say by years end we're up to 600 million. That would mean that for a $1 share price we'd have to justify a $600 million market cap. On a P/E basis if we looked at 10, that would require earning $60 million, at 30 it would be $20 million. While I believe both of these figures are possible, if sales are growing with each quarter, our valuation may be judged much more based on where we are by the fourth quarter. If we're earning $15 million that quarter we meet the P/E of 10 criteria, if it's $5 million, we meet the P/E 30 criteria.

I certainly don't know where we'll be, but I certainly think somewhere between $5 and $15 million is very possible in the fourth quarter, and it might be substantially more than that. What if we earn $15 million, and the P/E is 30, then we're talking about a $3 price. What's the worst anyone thinks we might earn in that quarter. Let's say it's $1 million. Even at that, with a P/E of 30 we'd be worth $.20, over 3 times what we are today. Most people would be thrilled with stocks being up 300% a year.

I believe we'll do much more than a million a quarter, even the post suggesting $500K a month would have us at $1.5 million a quarter. Frankly when I saw the U.K agreement I believe that alone would be worth hundreds of millions over a few years. Let's say I'm wrong about that, it's only worth $100 million over 4 year, that's $25 million a year on average. Too much, how about $100 million over 10 years, $10 million a year, even that is $2.5 million a quarter. In the earlier estimate where $1 million a quarter gave us $.20, that would give us $.50 cents on the U.K. agreement alone.

We don't know with certainty how anything will go, but I believe we know enough to see what I'm saying above is reasonable. I believe by the fourth quarter we'll see several millions from the U.K. agreement, and several million from U.S. operations and it will all add up to well over a dollar share price, and a market cap approaching or over $1 billion.

Gary