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Re: J-Tea post# 55

Friday, 01/12/2007 11:02:12 AM

Friday, January 12, 2007 11:02:12 AM

Post# of 1076
Are you folks also looking at fundamentals, or just following the charts. Charts are good, but they only relay on past trends. Fundanmentals it's what should (quite nicely, IMO) jump start this stock in the very near future.

(From memory, so might not be very accurate, but close enough take or give). Using my DD post (see several postings below):

1. The company expects $44M to $48M gross revenue, and $1.5M to $2M net revenue for 2007. Right now, I'm not aware of any other penny stock with this much potential sitting at below 0.1/share (if any of you know another such stock, I would very much appreciate you posting it here).

2. The best (to me) indicator, the Price/Sales (P/S) ratio of below 0.3, tells me the PPS at this point is way undervalued. The rule of tumb for a penny company with a proven good growth potential, the P/S should be between 1.5 and 2.0 (some of them go as high as several hundred and even thousand). So, in my books, once the first results confirm #1, the PPS has a very good chance to go up by at least 500%.

3. Have you seen the very recent three Form 4's? Although the CEO already owns over 50MM shares, he is still buying, and so is the Company's Secretary.

4. OS is quite stable (at only $138 MM - out of Yahoo financing info, and as confirmed by the last 10-Q). Even better, the float is just above 80 MM. The insiders own most of the balance.

I hope the above at least will encourage some of you to analyse the fundamentals, and see why I believe SDGL will bring some big smiles on many faces this year.

Mike
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