First lets keep apples with apples. A price of .07 puts the CPOW market capitalization at 16.8 Million dollars. That's the value the market has placed on this company. yes you can argue its for future potential, but if this was the case it's still overvalued. This is a company that has two JV's that may happen, a financing deal which is horrible and at these current prices will cause mass dilution if volume increases since there are many restrictions on the Roswell deal.
As far as PE ratio I hope we all understand that but as you state, this company has no profit, has posted negative numbers since inception and has quite a bit of debt. So take earnings lets say of 1 million dollars, multiply by a PE of 18 divide by total shares available, which is over 240 million, but I'll use 240, which is right at .075 per share. Of course you can look at past earnings or future earnings.
You can also say that using a PE of 18 is way to high where a number of 12 would be more likely as this company has no real assets. That would price the stock at .05, a more realistic price IF they actually had enough revenue to make a profit. Therefore the current price is still too high.
Now lets say financing goes through and the shares outstanding become 340 million, utilizing a PE of 12 with 2 million in earnings (increased earnings due to financing cash on hand for expansion) would equal .07 cents. You see even if you double the amount of earnings with the increase in shares due to the financing agreement raises the PPS very little. (yes these numbers are argueable but I think realistic) So for those who think this is going somewhere on its own soon, think again. You may have to wait three to five years. Now that's reality. But like you said, they have to become profitable first!!
