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Re: saplyak post# 24868

Friday, 05/27/2011 8:28:16 PM

Friday, May 27, 2011 8:28:16 PM

Post# of 29028
Saplyak, I'm as happy as anyone to see the financials, but we'd need a heck of a momo surge to push this to $5 near-term.

With 52m OS, a $5 share price means $260m market cap.

To merit that fiscally, OPHI would need to clear $250m in annual sales (for price/sales of 1) or $20-25m in net profit (price/earnings of 10-15) per year.

Currently, we have $1m in sales and a net loss of 30% of sales.
And at 0.20, we're trading at 10:1 price/sales ratio.

To be clear, I'm optimistic here and holding.
And I wouldn't be surprised to see us clear $1 on a near-term momo rally.
And $2 range if by 2012 if they have a strong retail rollout this summer/fall.

But the company needs to grow about 100x-200x in sales before it fiscally merits $5/share.

99.99% of all pinks are scams. Best to assume the other 0.01% are as well.

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