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Lord DarkHelmet

06/20/10 10:48 AM

#14001 RE: razorpockets #14000

$20,000,000 in sales is not profit, it is revenue. $20,000,000 in revenue should translate to about $5,000,000 in profit (EBITDA). You also need to account for the P/E ratio. $5,000,000 / 23M shares equals $0.21 / share (EPS). Accounting for a P/E of 5-10 then the share price should be anywhere from $1.00 - $2.00 / share. This is all based on $20,000,000 revenue (ie a "successful Product"). So, the potential market cap of $46M ($2.00 x 23M shares) / actual market cap of $7M gives us a ratio of 6.57. Multiple this number by the risk ratio of 0.7 (ie 70% success rate based on Cesari Directs past) and you have a reward / risk ratio of 4.5. As long as this number is over 1.00, then the reward outweighs the risk.
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investor_2009

06/21/10 12:39 AM

#14003 RE: razorpockets #14000

Long term, if the company survives, and I think it would, the price of 30c is super super super low. But I think right now the company and its CEO does not have a history to inspire confidence. This $20M was the reason why so many of us, me included, held or are still holding the stock. But no one of us know how long it takes to get to that $20M magic figure. If its 6 Months, then this stock is gold, but what if it is 2 or 3 yrs? I asked the question once on this board - how much time does it typically take for a 'hit' product to clock $20M? I didnt get any answers. I researched, and my guess - it takes a couple of years. Personally, I didnt have that stomach to hold. It eventually became too risky for me. Yes, we are placing our trust more on Cesari than on TSHO, frankly. We still dont know what the agreement with Cesari is. I just dont know how much stake does Cesari has in the success of TSHO. May be some of you know, but I dont
Anyway, this is a speculative stock at best, at this point. I hope everyone is looking at it with an unbiased attitude at this time, rather than the emotional appeal, which we stuck to, for past so many months, and while we got burned! Had we traded, instead of investing, we would have not been on this board right now!!! GLTA