SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Microcap & Penny Stocks : Ameriquest AMQT (formerly AQS)

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Arthur Tang who wrote (193)10/12/1997 11:26:00 AM
From: Arthur Tang   of 484
 
AQS must have book value to meet NYSE regulations and also making profit within a certain period. Book value is fairly low, I believe only $5 million. And losing money for two years is the limit; but if the company made money in one quarter, then they meet regulations, and can lose money for another 2 years.

If AQS has only $75 million sales, but made 1%profit on revenue. the profit can support a stock price of P/E ratio of 20. 75 million shares of issued stock would bring $0.20/share. If AQS profit is 5% of revenue then stock price for 75 million shares would be $1/share. Fewer shares would bring more value to the stock.

For computer 2000 to gain back the $100 million investment; what they own in shares times the value of the stock has to be greater than $100 million. At $1/share, they own 60 million shares; they only lost $40 million. At $2/share, Computer 2000 would be making $20 million in profit on their stock.

How do you do 5% profit on revenue, when gross profit is 8.4%-15%. Get more efficiency by re-engineering. Cut overhead by the start of resignations of top executives. But most important, control the cost of money(smaller loans or lower interest rate). More important is to reexamine the written off accounts receivable( continue to try to collect them). Asset refinancing must reexamine the assets written off and try to sell them to recover costs. Balance sheet will look better after that. You may need a management consultant to do all that.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext