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Re: jimmy james post# 13488

Tuesday, 05/04/2010 5:15:58 PM

Tuesday, May 04, 2010 5:15:58 PM

Post# of 16707
Not so true. I am not infront of my spreadsheet to have exact figures, but you forgetting to incorporate the PE ratio in the equation. Also, there are only ~23 million shares outstanding. They would actually need about 10 million in revenue to justify a pps ~$1.00. The U/S was assumed to have about a 25% profit margin and a PE ratio of 10.

$10,000,000 revenue x 0.25% (Profit Margin) x 10 (PE)
-----------------------------------------------------
23,000,000 (Shares outstanding)

= ~$1.00 PPS