Properly valued, .50 a share. I have used these metrics, VERY CONSERVATIVE ones at that. Remember, JBI lost 2 million dollars last QTR.
OK, Say 2011 Profit vs $18 Mil. Loss, lets crunch the numbers on a P/E basis...(I feel like I am teaching my E201 class)
OK, JBI lost 18 million dollars in 2011 or -.30 per share. Lets say they made loads of money and showed a .01 per share profit. What should the current stock price be? Lets assume they will double their profit for 2012...
$1/.01 = P/E of 100
2012 $2/.02 = P/E of 100 ($2 based on board predictions and the company is going to double profits)
A P/E of 100 is high. Growth companies usually sport a 30 P/E (double the S&P average) Lets look at some slow growing, hundreds of billions in sales/billion dollar profit monsters:
Exxon - 10 P/E
BP - 5 P/E
Chevron - 8 P/E
JBI - 100 P/E (IF THEY DIDN'T LOSE $18 MILLION/MADE .01/Share)
Lets be bold and give JBI the profit and a blistering 50 grow grow P/E. Stock price should be say FITY CENT? What do you think?
AND AGAIN JBI HAS LOST 2 MILLION DOLLARS IN THE FIRST QUARTER
Definition of 'Price-Earnings Ratio - P/E Ratio'
A valuation ratio of a company's current share price compared to its per-share earnings.
Calculated as: Market Value per Share/Earnings per Share (EPS)
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