Creative Edge Nutrition Inc (FITX)

[fellowshort1]

Well I agree with you that there are bright futures ahead of this company and I have been invested for a while as well. I have some capital freed up and ready to invest but with current information I do not feel this is a BUY order. I would say HOLD is a better order, so any flippers should SELL right now. I am long on this stock.

However here is why I feel this company is overvalued. Right now with current PPS our Market Cap is 17.123 Million Dollars. With only 88,000 in net profit we have a P/E Ratio of 194.58. This shows massive investors confidence, however it will take over 25 years for the company to reflect the PPS with current revenue and operating margins. That is why, current market price should be half the current PPS. Even with the bright future.

There are a few main problems. Several of the companies that were acquired are not turning a profit and that are killing this companies Operating Margin. Also the distribution channels are killing this companies revenue stream. There is a plenty of Cash on Hand and with this business and any growing business it is important. However the cash is still very limited, the cash is only 1.6% of the total Market Cap. In order for the PPS to reflect the actual value of the company I feel that the Cash On Hand should be 10% of Market Cap. The company should be worth the current price within the year. But with the current risk, and stagnant revenue, we are overvalued.

Believe it or not you actually turned me on to this stock and I am very pleased with this. I just want people to not panic when we do see a drop in PPS and bash the company saying its a scam.