SPO Networks Inc (SPOI)

[techtrade]

No problem.

Based on Q3 numbers, HLNT earnings were .0003 a share for the quarter if I remember correctly. Multiply that by 4 and you get .0012, so HLNT currently trades at around a PE of 5 and that's not factoring in any earnings growth whatsoever. Since I believe HLNT is poised to grow their business significantly in the coming quarters, the PE should and will be higher IMO. I can find several companies trading on the pinks who don't have any earnings to speak of yet their share price is higher, so its just a matter of time before HLNT re-appreciates to something closer to "fair value" (which we all know is a subjective term). Some might call this a simplistic way to gauge fair value but it works for me.

IMO based on the information available about HLNT the share price should be AT LEAST a penny now, and more once some more information hits the wires about current and future business developments. Some might argue that it should be more than a penny now and I wouldn't disagree, I just try to keep my expectations modest.

My best guess is that most of the selling pressure we're seeing the last few days is due to EOY tax selling by those who bought this fall above a penny and are underwater, and have decided to take the tax deduction. I believe HLNT will move higher in January ahead of the next earnings report. If you have Level II you'll see a lot more bids than asks for the current prices, but nobody is bidding it up yet because they are trying to take advantage of the last few morons willing to sell it so cheap.


Hope this helps.