Labwire Inc (LBWR)

[micham2012]

For the 9 months ending September 30, 2007, the company had net operating income of $338,125 with outstanding shares of 140,000,000, or $.0024 for 9 mos. -- for all practical purposes, a break even business. The 9 mos. number implies $.0032 for the full year. Giving it a 20 PE -- generous for a pinksheet stock -- it is still a $.06-$.07 stock.

I am very long this stock, and am optimistic about the future, but there is no reason to exaggerate the company's accomplishments to date. If the company's performance had been all that impressive, the share price would not be where it is. The company has to earn $.01 or so for the stock to get to $.20-$.25. I will be very happy if it can earn that kind of money in 2009. But it is hardly a fait accompli.

I think that the USIS relationship will grow the top line. I hope the company has not had to give too much to USIS to get the business.