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Microcap & Penny Stocks : Madera International - Symbol WOOD

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To: Proletariat who wrote (761)1/24/1999 6:22:00 PM
From: MTDEX  Read Replies (2) of 1979
 
Stock prices are driven by supply and demand. Supply and demand is driven by expectations regarding future earnings. If I, as an investor, expect Madera to earn $.025 per share each quarter over the next 4 quarters, the stock should trade in the $1.00 neighborhood ($.025x4x10, where 10 is the expected market multiple, just an assumption). So, the answer to your question, if you buy my theory, is: Will the proposed sale actually happen? If so, how will it result in an increase in earnings power, and how large is that increase likely to be?
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