Banks.Com (fka BNNX)

[pwise]

Is Banks.com Inc (AMEX:BNX) going to grow into profitability, or not? Some suggest the current growth trend could trsnalte into as much as $2.5 million to $3 million in earnings this year. With more than 25 million shares outstanding, that translates into per-share profits of $0.08 to $0.12. Assuming normal valuations, such earnings could mean BNX would be worth $0.60 and $1.00 by the end of the year. The problem is, the 'could' is a hypothetical, and doesn't quite jive with actual trailing results.

Yes, revenue was up in the fourth quarter, but Q1's (2011's) suggested revenue forecast is only about half of Q1's from 2010 (from $4 million to $2.3 million). Comparable earnings are falling too, suggesting that the high-growth phase is already over, and everything from here will be a struggle. [Editorial note: The Banks.com market cap is still only $5.7 million, which when divided by Q1's annualized earnings of around $750K still translates into a P/E of less than 2.0.]

http://www.smallcapnetwork.com/Trader-Talk-What-Real-Traders-Are-Saying-About-BNX-OPTR-and-NVDL/s/article/view/p/mid/3/id/889/