Hmmm.. Lets analyze your logic here..
<<Assuming those numbers are correct that's about $12,000 per day and if they can sell product at that rate and those prices for 365 days straight without any product returns whatsoever, they will break 4 million in revenue for the year.>>
I think you should go back and read my post again Rod. With your theory, Walmart stock should be at about 25 cents based on only one stores sales. The numbers I posted were from 1 online store. Last time I checked, Syncronys sold their software at more than one store. Considering Syncronys has their product in thousands of stores, 4 million a year at one is pretty damn good.
<<If those rosy conditions hold, you are looking at a money-losing company with a book value of minus 20 cents and trading at 10 times annual revenues versus a more typical 1 to 1.5 times annual revenues.>>
Lets see, "typical 1 to 1.5 times annual revenues"? So what you are saying is that Microsoft (which had annual revenues of $2.66 per share) is trading at $2.66 - $3.99 a share right now? Where do I sign up to buy?? Wait, reality strikes again, Microsoft is at $141.50 which is 53.22 times their annual earnings. That is a little bit higher that the software industry average of 34.7 times annual earnings.
<<The only thing sweet is the premium being paid for these shares and I would expect them to retest the 52 week low. What is the 52 week low anyway? Oh, that's right, 0.02 per share.>>
I don't know where you are getting your quotes, but Yahoo shows the 52 week low at $0.625
From reading the above, I would have to assume that you have no knowledge of the stock market or how it works. Before you lose a lot of money, you should learn what P/E ratios are and also how to correctly read quotes. You might want to check out fool.com They have tons of useful information for beginning investors. |
