News Focus
News Focus
icon url

stockguy1234

01/20/11 10:51 AM

#1422 RE: handyhintz #1418

mature stocks do not trade at a multiple of sales, emerging stocks such as CPOW trade on extreme multiples of existings sales to reflect the potential futures sales.

That is the case here- CPOW says total potential annual sales could approach $40 million with 300 million shares out and a 1:1 sales to market cap this gives a share value of $.13-this is my reasoning to say the deals have already been priced into the current share price.

With say 5% of sales becoming net income (after tax and all expenses) this would be a multiple of 20 times earnings

Current CPOW sales are far far from $40 million so any sales shortfalls could lead to drop in the share price.