Replies to post #186311 on Spongetech Delivery Systems Inc (fka SPNGQ)

[huggarags]

Happy, Yes I want to see an x-ray of your brain, please
Debbie

[happyguy72]

im still trying to understand how a $60mm market cap is logical...

im gonna take a liberty and convert booked orders into revenue (they have a track record of doing this, btw),

lets take away the history of the run rate and just mark 70mm per quarter as our basis...

70mm x4 is approx 280mm in revs... and lets not give due credit to margin expansion as a function of the dicon purchase and use the approx 16% net line that we expect to see on the k from fy q4...

that would give us fy10 10k bottom line net at around 45mm...

a $15mm premium to this years (fy10) bottom line is simply not logical to me...

[happyguy72]

if we use the roughly 1000% rev growth that we have now seen over the last 2 years, then we could expect 500mm in reve and 80mm to the bottom...

thats a big number and i don't really expect it... but there is a logic behind it...


now, how do you place the over all market cap of a company BELOW the bottom line?

and... how come there isn't a multiple involved??... isn't that one of the guesswork metrics that helps define a pps overall??

or since spng is on the otcbb right now, it doesn't deserve one from your viewpoint i suppose??