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Re: gold-leade-r post# 75210

Monday, 01/09/2006 7:38:10 AM

Monday, January 09, 2006 7:38:10 AM

Post# of 286506
Re: "the only fact we have is Sub numbers from the sec filings , the rest is opinions that influences creditability."

One thing for sure. This is a very speculative stock. With a Price/Sales ratio of 21.7, it is way overvalued, IMO:

http://finance.yahoo.com/q/ks?s=GZFX.OB

The only higher than this P/E (that I know of) is SIRI.

Usually, P/E ratio should be between 1.5 and 2. Everything over 2, I try to avoid, unless it is an explosive growth stock. Take for instance, VFIN (P/E = 0.25 - way undervalued), or DVW (P/E ~0.6?). Also: look at fast growth stocks such as CIRT, GDVI, MOBL (P/E around 1), and you may get the point.

It's your money, and you might be right. Sometimes wonders happen. But not very often. In my books, anything with P/E above 5 is a skip. If I feel like gambling (which I do now and then), I prefer low PPS stocks, such as IVGA (@0.0012, after the recent LOI), might be a good gamble.

Best of luck,

Mike