Yeah, everyone in the world is looking for a stock that goes from .1 of a cent and then multiplies by 750x and goes to 75 cents. Now how many people do you think that are looking at GLEC to accomplish that investing miracle? Icahn? Buffet? Templeton? Well, certainly not John Templeton because he's dead, but since his whole investment philosophy was diversification I doubt that he would have much interest in GLEC.
The point is a lot of you guys have vivid imaginations of striking gold with a penny stock, this one or any other one. Take a look at historic metrics and you will find how preposterous it is to wish for a sub-penny stock to hit 75 cents.
Granting even generous valuation rates - GLEC would have to reach net earnings of about 35 million dollars a year to achieve a PE ratio of 10 to get to about 75 cents a share. GLEC, in more that a decade of operation, finds it to be an impossible struggle to make 1 dollar a year in profits, much less than 35 million. An even more staggering statistic is price to sales. GLEC would have to be in the neighborhood of revenues in excess of 500 million dollars per year to warrant a 75 cent price tag. Take a guess on the odds you could get that it will occur.
You guys think 1 cent level has been difficult to penetrate? You ain't seen nothing compared to what will happen at 2 cents. Millions and millions of shares were bought at or around 2 cents, and those people will be looking to get out with their money back. It will take verifiable and jaw dropping news to get it through 2 cents. Above 2.5 cents should see pretty unobstructed ascent to about 4.5 cents. 5 cents will hold a another huge war between sellers and buyers.
I could go on and on. There are a half a billion shares outstanding, and I would estimate 80% of those shares are owned by guys anxious to sell. That is a recipe for resistance.
So the likelihood of you waking up one morning in the foreseeable future and the stock is 75 cents? Probably less than you being named the starting QB for the Broncos on Sunday. Well, maybe a little bit better than that. lol
