Replies to post #82476 on Value Microcaps Motherboard

[Deewar25]

1.3m is still based on original OS - so they still did 0.51 clear - thats 6.9 PE. Plain and simple, trailing PE IS based on shares at the time, not shares 3 months later - you just don't look at it that way.

The way I see it, based on growth rate, it is likely they will offset the dilution and will see similar EPS next year even on the higher shares - i see trailing PE 7, forward PE 7....this is half fair value if not 1/3.

[BiotechValues]

You're not using GAAP on SGTI
You don't restate earnings based on shares added AFTER the income was booked.

But even if you were to do so, SGTI is a good buy under $4 share IMO.

They said in their filing that they found themselves selling out of product domwstically and unable to export as much dextrose solution at higher margins as they would like as a result.

This has caused them to expand their plant and production capacity, which cost $$- hence the additional shares.

Given their growth history, and this new added capacity with higher margins, I think they can match or exceed the 2007 numbers of .62/share they released after Friday's close.

Nobody's a fan of dilution, but when it is done to raise cash that allows you to increase production because YOU'VE BEEN SELLING OUT OF PRODUCT, it's not a bad thing at all IMO!