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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) Info and Positive Thoughts Only
PABN 0.000010000.0%Mar 7 3:00 PM EST

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To: pbill who wrote (305)8/2/1998 10:58:00 PM
From: ISOMAN  Read Replies (2) of 1129
 
First off, at this point $2.00 is very unrealistic. Who said $2.00 per share?

anyway, at this point the earning power of PanAm is conservatively 5.4 cents per share see this post as to how I derived at that:

Message 5354169

Now with earnings like that, we take a normal price to earning ratio to find a realistic stock price.

At a P and E ratio of 5 we have .27 per share

At a P and E ratio of 10 we have .54 per share

At a P and E ratio of 20 we have 1.08 per share.

This is how you figure valuations.

You figure what you think is normal for a P and E ratio.

I have seen P and E as high as 80 on BB stocks.

many hover in the 35 to 50 range.

I am comfortable in the 10 to 20 range.

You might want to read up on the whole price to earnings ratio.

Microsoft is at 54 BTW

If you want to see obscene P and E ratios Check out YHOO, AMZN and many of the other internet stocks.

PM me if you have any other valuation questions.
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