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Re: lowman post# 181939

Saturday, 02/22/2014 6:30:12 AM

Saturday, February 22, 2014 6:30:12 AM

Post# of 232507
Thanks for the insight lowman. Should KMA attain a lofty PE ratio as a result of a short squeeze, the common knowledge is that the unsustainable level will drop back to a lower average. The share price would drop accordingly.
An alternative is that the PE will drop as a result of a dramatically increasing revenue flow as new business comes on line. In that case the share price could rise as the PE ratio drops.
We know that short squeezes produce wild quick price swings that confound traders. Perhaps a leveling factor will be a news stream projecting significantly increasing revenues.