Blue Dolphin Energy Company (BDCO)

[snow]

modes Stocks are priced in relation not to past earnings per share but anticipated earnings per share over the next few years. Very fast-growing companies may have a market cap 100 times their profits. If profits are expected to decline a lot a company may have a market cap that is lower than past profits if net assets per share are low. What is crucial in relation to BDCO is what earnings per share that is most realistic looking say 5 years ahead if this company trades on NASDAQ. Nobody knows the answer. My guess is between one and two dollars per share, but I don't think the upside is much above 2 dollars. Unexpected events may occur but the market will adjust to that event fairly fast in most cases.