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spongeboy

08/29/09 9:01 PM

#178485 RE: Paras #178432

$.33 - $.67 $1.50 $3.00 The New price PPS after 10k

I think 10k will come out Monday at 4:30 and will show $56M sales $11M Earnings 500M O/S.This is .0224 per share. A P/E of 15 gives us the PPS of .336 any sale below that number is stupidity. If the O/S is 250M the PPS is .0448 so a P/E of 15 gives us the PPS of .672 But stocks are priced on future earnings so.....

We are almost 3 months into our new fiscal year. A PR announced we did $55M in 11 weeks ..or $5M per week ($260M if it doesn't grow) - If we do only $250,000,000 in annual sales ($10M low for "easy math").. Earnings should be $50,000,000 profit margin has been .17-.21 but could be higher with volume and the Dicon aquisition so earnings are $50,000,000 or .10 PS

Our industry commands a 17 P/E (but I will use 15)

If the O/S is 500M .10 EPS 15 P/E = $1.50 PPS- easy
If the O/S is 250M .20 EPS 15 P/E = $3.00 PPs- easy

Growth could justify a 20P/E so O/S 250M .20EPS 20P/E =$4.00

My sales above are $10M low and I left out the $10M in sales Dicon says they do when we bought them. Dicon also said they did 1.5M in profit.

Don't panic sell below .33 and watch for the O/S number.