Try comparing it to CMG. This is a growth company. Their growth has slowed considerably, and their P/E is 30+. Granted, if you apply a 30 P/E to the earning we know of from SPNG, that would only put them at a PPS of .30. SPNG deserves a higher P/E, based on much higher growth, and their earnings should be considerably higher by now. When CMG's revenue growth, and earnings growth were much higher, they were never anywhere near 900%, and 700% respectively.
If SPNG reduces O/S, earnings could conceivably reach .10 per share, in near future, their growth is probably higher now, and could command a speculative P/E at 40. That's $4.00. Move the numbers around any way you want, but what I am trying to say, is that $4.00 is not out of the question, in a very short time, if the company makes the right moves, and sells more product.
JMHO,
SpongeBath