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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services
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To: CO who wrote (14224)4/28/1998 8:22:00 PM
From: Mark[ox5]   of 27968
 
Some OTC-BB stocks are trading at a PE as high or higher than 300

Cheryl, I will agree to disagree with you.
Of course, if it just our opinions.

What I do when I look at companies is compare them to their "big brothers" on NASDAQ. Yes, some companies trade on OTC at 300 PE.

But If I see hmmm (an example) Amazon (yes its losing money--wow up 13% today..what a joke..) but anyway lets say Amazon was making money and was trading at 100 PE. If I found a similar company on OTC I would chop of 40%-60% from the PE and apply it to the OTC company (in this case a 40-60 PE) Internet companies on NASDAQ maybe get 200 PE, but the same company on OTC I would give a 80-100 PE.

In this case temporary companies on NASDAQ might be in the range of 40 PE... so I would reduce it significanly for FAMH.. maybe 15 to 20 PE as Colling has indicated.

Many companies (no, not all) with foreign designation "F" on NASDAQ trade at a 10%-15% discount to their "brothers" on NASDAQ (in similar or same industry) who are U.S. Based.... there is that discount due to "uncertainity" about accounting practices, guidelines, rules in that country, etc.

So I apply the same thing to OTC but more severely. Heck if 30 PE applied to FAMH it should be a $3.00 stock Friday, or at least $1.50 (with the share dilution).

Not arguing, just have a different view on it.

Mark
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