Wow, I went under google finance, and wanted to search for a list of stocks trading above a 50 PE, and interestingly enough, found quite a few. All the way up to 450PE. Reason I find this important, is for my calculations on what fair value of SPONGETECH might be. Like I’ve said before, I think $3.4 is fair value.
(25M a month in sales
X
12 Months
X
.20 profit margin
X
20 PE)
/
350M outstanding shares.
=$3.4
Now what I think is important, is to say, what if SPNG traded at a PE of 100. Well that number would be $17 a share. While maybe its not fair to assign SPNG a PE of 100, is it really crazy considering the fact we grew 1000% YOY? I don’t think anyone can scream and say that is crazy overpriced, when there is hundreds of stocks that trade a PE greater than 50.
Now given the massive amount of Naked shorts in spongetech, I think one could very likely conclude 100PE, and $17 PPS, is a realistic target for the short squeeze. Which is interesting, because I’ve talked before, about a group of strong longs looking for $18 a share.
To the bears.
Yes OS is 350M, look at RME’s holdings vs before.
Yes sales a real.
No, the kitchen sponge is not out, but I agree, its going to be MASSIVE
No, this company is not a scam.
Yes, Naked shorting is huge in this stock.
MINGY
AI
