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Re: PennyWorld post# 2078

Thursday, 02/03/2005 12:31:48 AM

Thursday, February 03, 2005 12:31:48 AM

Post# of 36792
Penny, if Roundmot were off by 50% and profits were 50% of sales, that would be $20 million in earnings, or to put it another way, nearly a half cent in earnings per share. I think a P/E of 20 would be fairly conservative for a penny stock that has earnings and no outstanding debt, that would give a stock price of a dime.

If Round were more accurate, if profit margins were higher, or if the P/E was substantially higher you could probably make a case for up to perhaps fifty cents, but I think that's a stretch, a quarter, however is a real possibility on $80 million in sales.

Of course we'd actually have to see figures, saying we're up 500% over last years figures wouldn't hack it. If Fayiz is serious about getting off the pinks, we'll see the figures before the year's over. If not, we might just be the most profitable sub penny stock in history.

Gary