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peeved

07/26/07 6:55 AM

#20228 RE: Gbathat #20211

Gbathat...

regarding your profit margin, I agree with your estimates, but 2 things.

First and foremost

If there is to be major financing, I assume there will be significant dilution with that.

Second, you need to include insider preferred shares in the valuation, which I believe is on the order of 4-500 million shares, unless the value has increased since making them preferred..

Regardless, I hope that will be at least 70+ cents with that revenue...

I also think you may be high balling the PE ration, but lowballing the profit margin