Lowtrade:
I agree with some of your analysis and number crunching but think you are being way too simplistic and conservative and don't agree with you on a few things:
1. So, in your eyes 'the average' AMEX company trades at 10x earnings apparantly which I have no idea how you got that number but will take your word for it. Even so, to lump GTEL in that average and just simply presume we should therefore trade at a PE of 10 I just don't agree with. With a new, and if proven successful technology like the Strat it would be feasible to me have a 200+ PE (assuming we had a profit which will be soon apparently on business not including the Strat).
2. Also, a lot of technology and telecom companies just don't fit with these kind of high level, blanket calculations. Look at Qwest, XMSR, SIRI to name a few). None of these companies makes a profit currently and a PE doesn't even exist. Both Q and SIRI have billions of shares O/S as well and a boatload of debt to boot which GTEL has none as of now.
3. Can you put a price on hype, public sentiment, the sector, potential uses of the Strat and revenue streams? Thankfully you can't and not every investor uses your basic fundamentals or we would all just sit around and wait until the PE reaches 10 and then everyone would all buy at one time of course.
So, I agree that this is a good tool and approach for some people and just one of many techniques to consider in doing in depth analysis of a company but fortunately you are just one investor (out of 21,000+ roughly and growing) and if you base every single investment on simple Market Cap and PE ratios then GTEL obviously might not be your cup of tea at the current time (until it hits that magic 10 PE of course!).
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