Spongetech Delivery Systems, Inc. (fka SPNGQ)

[RJRFlorida]

Valuation based on 18million sales per month (based on June 2009 Sales) is 216 million PER year
Say profit margin is 20% thats 43 million
Earning/OS 43M/723M = 6 cents per share
PE ratio = PPS/EPS
PPS = PE* EPS = 6*14 = 84 cents (PPS w/ 723M outstanding shares)
PE ratio of 14 is average PE ratio of all stock since 1920 to-date ...For growth companies PE ratio can be lot higher

If company is buying back shares and retiring them,
the OS is likely only 300M shares and will be confirmed in the 4th QTR 10K due out this August.

Using the likely revised OS of 300M shares:

43M/300M = 14.33 cents per share
PPS = PE*EPS = 14.33*14 = 200.62 cents = $2.00 per share (PPS with 300M outstanding shares)

The profit margin yielding 43 million is very conservative considering June sales numbers did not include barely any of the Sponge Bob sales, no Costco sales, etc.

Don't laugh... This stock may very well be worth $4.00 per share without a R/S.

The numbers don't lie... run the numbers and follow the 10K OS to calculate real value of the stock.