Optec International Inc (OPTI)

[Renegades17]

Valuation is absurdly cheap


Currently, the stock is trading at ~3.4x run-rate (ie. last quarter annualized) earnings. That's earnings, not revenue. For a company that likely will grow revenue at least at 50-100% for the next couple of years, that's incredibly cheap. Put a 15x multiple on earnings and the stock is $0.12-$0.15 and that's arguably much too low of a multiple.

I'll let others speculate on the reasons for the stock reaction in the last couple of days. It's unjustified, but it happens a lot on the OTC (unfortunately). On the positive side, it represents a great opportunity if you can take a view of as little as a few weeks (or perhaps days with the right PRs).