Here is another example of twisted thought processes on the Yahoo Psychic Network. This one was posted by Coffee_IV:
"The way I see it, if there are a total of 15,500,000 shares outstanding, and monthly average gross is 1.29 million, then that is a gross of $1 a share per year. The net could be a modest 1% and the PE of this stock is 1. For a company that apparently is competing with DCLK, that would be great. No, it would be better than great."
Letsee, 1.29 * 12 (a bad assumption, but I'll accept it for this purpose...) = 15.48. OK, close enough. $1/share in revenues.
1% net = .01/share in revenues.
P/E = 1.25/.01 = 125
Where did he get a P/E of 1?
Of course, if the net is 10%, you've got a P/E of 12.5.
But I suspect that, like all Internet advertising companies, they have a loss, and a negative P/E.
Without full financials, who is to know?
Why did they release a revenue figure without an income figure? |
