Replies to post #781 on SPO Networks Inc (SPOI)

[Luca Brasi]

Yeah, your D/D sounds great, but when is it going to happen? I have been patiently waiting.

[skt]

Asklepidaurus-target of $0.0220-$0.0310 looks realistic

Assume revenue of $7-5 million, 66% margins as in previous years, and 750 million shares.

HIGH end ~ $0.0310
Gross Profit = ($7 million revenue) x 0.66 = $4.62 million
$4.62 million / 750 million shares = $0.0062/share
If PPS reaches 5X gross profit/share => $0.0310/share

LOW end ~ $0.0220
Gross Profit = ($5 million revenue) x 0.66 = $3.30 million
$3.30 million / 750 million shares = $0.0044/share
If PPS = 5X gross profit/share => $0.0220/share

(Note: the average U.S. equity Price/Earnings ratio from 1900 to 2005 is 14, so using 5 may be a low estimate.)