iQSTEL Inc (IQST)

[snow]

Boiler "Are you seriously dumb enough to value the company based on P/E ratios and 500k earnings?" You would seem to be way more stupid because you seem to think that a p/e ratio is based on quarterly operating income, which I referred to. Don't you take the projections of management seriously. My number was based on a projection he has repeated a couple of times as far as I remember. Of course I pay attention to more than earnings per share this year. You were happy with my referring to a certain company in telecom. It was well established but had a net profit margin of only 3 percent. It would seem that in a best-case scenario IQST can only hope for a very modest net profit margin.

A p/s of 1 is in my view too high in a best-case scenario several years into the future when a company that can be expected to grow close to 30% for years to come and last year had a net profit margin after full taxation of 13%, and even so had a p/s of less than 2 and trades on NASDAQ. It suggests that a NASDAQ listing is not a panacea for this company.

In fact I will not be surprised if this company generates net profits of 3 million dollars this year. That is actually more or less my expectation. It would imply a p/e ratio in the range 15 - 20 and would suggest that this stock is roughly fully priced. In a few years net profits may be 10 million dollars. But what will the O/S be if that happens. Of course worthwhile acquisitions don't come free of charge.

"Even a P/S ratio of 1 this year is like 300M revenue / 176.8M current shares = $1.70 SP." With a possible net profit margin of 1% a p/s of 1 is in my view far too high when a NASDAQ company that has a net profit margin of 13% trades at a p/s of less than two. A p/s of .15 would seem more realistic if the point of departure is that other company.

I know of course that IQST cannot be valued based on a p/e ratio based on the loss last year.

"And you're ignorant if you think they'll only do 500k." If I am ignorant you are dishonest. I referred to a number used by the CEO several times: operating income per quarter.

I never said this is a bad investment. My point of departure for my post was your absurd assertion om stocktwits that if this stock had been trading on NASDAQ the pps would have been 10 times what it is. How profits evolve during coming years will to a high degree depend on how much IQST will have to pay for coming acquisitions. That is unknown at this stage.