Replies to post #51631 on Green Energy Enterprises Inc. (GYOG)

[xZx]

what makes me laugh is here we have a company that's basically brand new, at the very beginning of its growth phase, and a handful of people want to assign it a PE ratio of zero (or in the case of samplescave, perhaps a negative number), and others think it deserves the multiple of a seasoned company.

you want growth? sometimes you gotta pay up for it. how high? watch it run. as others have said, if/when they close these deals the market will decide, and it may be a lot higher than some are suggesting. jmho.

[MarketGeometry]

Not exactly. Even though QASP is a new company the companies being acquired are not new IMO. They must have strong earning record and competitive advantage to be acqusition target. So we can trade at combined EPS (trailing twelve month)of all the target companings . Otherwise aqusition make no sense. How these companies will work together in synergestic fashion we have to wait and see. Also these companies may have tangable assets other than earning. We are not even considering that in our valuation since we don't know what those assets are yet. This is very good business strategy and if they only can execute correctly everyone will be rewarded. We cannot expect PE ratio of 15-20/30 range since this is after all pinksheet trading and there is no Audited financial yet. If we get audited financials of all the target companies we can expect PE ratio 10-15 range in the long run.

[RoboTrader]

I knew I read this somewhere before. MAK, if you're going to take someone elses writing, don't make it look like you wrote it, at least include the original link:

http://invest-faq.com/cbc/analy-pe-ratio.html