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Microcap & Penny Stocks : TALK -- Ignore unavailable to you. Want to Upgrade?


To: ChrisJP who wrote (45)11/8/2002 7:52:11 AM
From: Alfred W. Post  Read Replies (1) | Respond to of 55
 
This is in my way of thinking; better than expected, And sinc the telephon industry is certainly not cyclical you can at least assume that to get an rough estimate of yearly earnings you could just multiply the new quarterly result times 4 and if you round things up a bit, you can assume that the yearly earnings of TALK would be at least $2.--. Using this number to calculate a PE at the current price of $9.- would give an incredible low PE of 4,5 and if you take the earnings groth also into consideration things become even more unbelivable. According to a simple rule that gives a reasonable PE you just take the groth rate. If you therefore use a gothrate of only 13% and apply this to TALK (13 X 2) you would arrive to a possible share price of $26!!!!
Assume further that somone would apply a search looking only for shares with a PE of 5 or lower then he would stumbel over TALK and a simple study would show him the tremendous potential and ....
Now tell me if I am crazy or the market just has so far overlooked TALK despite the high volumes we did see???
Fred