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Microcap & Penny Stocks : 10-Bagger MINIMUM Rise from July 1, 2005 until December 31,
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To: inchingup who wrote (1538)12/6/2006 11:10:45 AM
From: rrufff  Read Replies (1) of 1694
 
inchingup - re LBWR - You're exaggerating and ignoring the environment in which the stock resides in order to go after the stock for some reason because of an issue you have with Soros. It's readily apparent to the reader.

The fact is the company is public in a market where revenues are fairly scarce and net income is almost non-existent. Furthermore, there is a premium for good communications and transparency, at least compared to its peers.

Demand for this type of shares vs. supply of stock is what determines the share price rather than what a willing buyer would pay a willing seller in private business sales.

In using very rudimentary analyses, such as PE and P/S, rather than an in depth study of the business (that you would do in private busioness sales), you show yourself as someone with an MGB agenda rather than a specific substantive analysis of value.

Let's take a similar rudimentary view based on revenue projections.

I've seen projections going forward as high as 10 million, but let's call it 3.5 million.

If you give it a price to sales ratio of 4, (which is a number that many use in private business sales for high growth, high cash businesses) you get $14 million. Divide that by 140 million share and you have a share price of .10.

Just as you played games with goofy surface ratios, I can do the same. I'm not advocating either approach.
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