Enzyme Environmental Solutions Inc (EESO)

[xZx]

EESO "back of the envelope" valuation:

$8M revenues

X (an estimated) 5% margins

= $400K net profit

divided by 224M OS

= .00178 EPS

X 30 pe ratio

= .053 price per share.

but margins are probably much higher than that, based on the products in their portfolio. so let's adjust it a bit:

8M top line X 15% margins = 1.2M net profit/224M OS = .00535 eps X 20 pe ratio = .107 price per share.

here we've got higher margins, but a more conservative pe ratio, and the pps is nothing short of incredible.

please note these are just wild guesses. we'll have to find out from the company what their net margins are, but so far i am feeling pretty bullish. as of friday's close EESO looks quite undervalued imo.