Value Microcaps Motherboard

[wadegarret]

traderfan- TELT

I think the question is how much in EPS they can post. I mean, if they start showing some strong qtrs again, the stock price could easily hit $2. To make the balance sheet very healthy, they need around $12M-$14M in cash IMO. If they dilute at lets say $2, then 6M-7M new shares would only cause around 40% dilutiion. If they make lets say $.50 in 2010 on 9.7M present shares, they would then post $.29 on 16.7M shares. I believe the stock would have to be worth at least $2 in that scenerio.

So as I believe the biggest question is, what EPS can they consistantly post. Then you could figure 40-50% dilution to get the balance sheet real healthy, and then tack on a 8-10 PE. Therefore TELT is likely very cheap around $1 right now for their potential- at least if 2010 is anything like 2009.

Wade