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Microcap & Penny Stocks : Liteglow (LTGL)

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To: Linda Kaplan who wrote (350)3/1/1998 12:59:00 PM
From: Bigwave  Read Replies (2) of 4715
 
Let's be conservative and say LTGL will enter into a deal with Pepboys for $10 million in sales. Let's say their profit margin is only 30%. That gives LTGL a Net Operating Income of $3 million. (3million*50%tax rate)=$1.5 million NIAT. Lets use the highest estimate of the shares outstanding on this thread, which is 60 million to calculate EPS. Assuming no preferred stock, LTGL would have an EPS of .025. At only a 20 PE, this stock is worth .50/share! Lets get even more conservative and go with a 10 PE. The stock would still be worth .25/share! If the sales are there, I would say an optimistic estimate of this stock is $1.00/share short-term. This one is going to be fun to watch! Happy investing all!
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