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Re: handyhintz post# 1418

Thursday, 01/20/2011 10:51:51 AM

Thursday, January 20, 2011 10:51:51 AM

Post# of 6560
mature stocks do not trade at a multiple of sales, emerging stocks such as CPOW trade on extreme multiples of existings sales to reflect the potential futures sales.

That is the case here- CPOW says total potential annual sales could approach $40 million with 300 million shares out and a 1:1 sales to market cap this gives a share value of $.13-this is my reasoning to say the deals have already been priced into the current share price.

With say 5% of sales becoming net income (after tax and all expenses) this would be a multiple of 20 times earnings

Current CPOW sales are far far from $40 million so any sales shortfalls could lead to drop in the share price.

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