Cargo Market cap only about 6 million dollars for 20 million dollars in revenues.
If we have a company that has price to sales ratio of 2, that would be 40 million dollar market cap! Then take the outstanding shares and divide into the market cap and you would get the price per share. 40 million divided by 565 million would be a price of .07 with no premium for future growth!
And assume a price to sales ratio of only 1, which is never used for valuations, the price should be .035 RIGHT NOW!
Now assume the company comes in with 5.5 million in revenues 3rd quarter and 7 million in revenues this 4th quarter, which should be reasonable expectations, the price would be .042 for Price to sales of 1 and .084 for Price to Sales of 2.
So what this company needs to do, is concentrate on its business plan, PR any positive developments, and GET THAT 10Q out on time in November! If it appears they have met revenue estimates for the 3rd quarter, an early update PR announcing that fact is legal and common for reporting companies!
Also, the acquisition front could hold some nice surprises, so imo, adding all you feel comfortable holding is a great strategy at these depressed levels.
