Fetter, Sorry it took so long to respond to your post.
These are some of the definitions that I use while evaluating stocks and some of my resonings.
What I believe you stated as an EPS is really revenues or sale per share. If it is, then the Price/Sales for CETEK at a price of .002 and an EPS of .002 would be 1. This says that the market is valuating CTKH correctly. But this has not taken into account the growth of CETEK. Some of the high
tech companies, esp. in the late 90s, were being valued by
anticipated revenues. If we evaluate CETEK this way, the sky is the limit, if you are an optimist. Or sell as fast as you can, if you are a pessimist. Obviously, I am an optimist!
Also, it has not taken into account any cash that CETEK has to make acquisition with which would boost their sales tremendously and thus make CETKH extremely under valuated.
What is really phenomenal is the revenue per employee!
Earnings per share (EPS) - A company's [bp profit divided by its number of outstanding shares.
Profit - Revenue minus cost. The amount one makes on a transaction.
Price/Sales - Current price divided by the sales per share for the trailing twelve months. If there is a preliminary earnings announcement for a quarter that has recently ended, the revenue (sales) values from this announcement will
be used in calculating the trailing twelve month revenue per share.
IMO a PS < 1 means the shares are undervalued.
PS > 1 means the shares are overvalued.
The interpretation of the PS ratio varies by the sector that the stock is in. I do not know what the PS ratio means for a pink sheet manufacturing company with ambitions of being a nano and fuel cell player.
Regards,
King_George_Va
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