Replies to post #235 on China Teletech Holding Inc (CNCT)

[fastlizzy]

What is this IPO worth?

http://www.pinksheets.com/quote/quote.jsp?symbol=ruso

take a look at their financials!

[OriginalFred]

I knew this was over valued at $1.84. It is worth $.57 to $.85.

Posted by: OriginalFred
In reply to: None Date:6/3/2007 11:31:49 AM
Post #235

Over Valued

I just got a post card in the mail advertising GZGT. I usually just throw these things out, but sometimes I look them up just too see how bad an investment they are. This one is bad but better than most. Here are the numbers:

Market cap = 53M shares x $1.84 = $98M
Sales (annualized based on last quarter) = $3.76M x 4 = $15M
Earnings (annualized based on last quarter) = $12.4k x 4 = $50k

P/S = 6.5
P/E = 1960

A P/S of 6.5 and P/E of 1960 are pretty high for a company that sells phone cards and cell phones! A P/S of 2 to 3 would put the stock price in the range of $.57 to $.85.