Replies to post #50665 on Hong Yuan Holding Group (HGYN)

[jdubb75]

I think a 30x p/e is a pretty lofty short term goal on a penny stock with a recent history of financial troubles and insecurity...to say the least. I'm not saying they are a bad company. They have to do what they have to do to stay in business and move forward. It seems like they have a plan and are executing it, but lets be realistic with the numbers...maybe with a reverse split to get the o/s back down to 60-ish million like it was before. Even solid companies like MSFT and AAPL are only trading with about a 13x p/e. A p/e of over 30x is not a common occurrence.

[stealth321]

Lol..PUH-leeeze!..$1 per share?..with a billion shares OS?..lol..first let's get above .02 and stay there for a few days...

[Bsav88atty]

Antber - While $20M in profit next year is possible (especially with the NOLs to keep tax expenses very low), even with a 30 PE multiple (which is also possible with high growth companies accelerating net earnings in the high-double or triple digits), I believe a sustainable price of $1 anytime in 2014 will not occur without a reverse split. CERP will likely have over 1B shares outstanding by that time. Applying your numbers and 1B O/S would equate to $0.60, not $1. As you'll see from my stickied post above, even $0.60 is well above my estimated sustainable price target range for next year. Buy, hey, I'll take $.60 in a heart beat.