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Microcap & Penny Stocks : JAWS;A P/E of 2 with 150%/yr Erngs Growth!! -- Ignore unavailable to you. Want to Upgrade?

To: Bill Purcell who wrote (808)	4/27/1998 1:41:00 AM
From: Beermeister	Read Replies (2) \| Respond to of 4230

I Expect No Sell Off Tomorrow. There is no panic here guys. We have a solid company, and I expect a gap up to open at the $1.50 area. We all know these shares are worth $3 minimum and that is where it is headed. I know Wall Street West readers will be buying heavy all day and probably throughout the week!

To: Bill Purcell who wrote (808)	4/27/1998 1:54:00 AM
From: flightlessbird	Respond to of 4230

FWIW, I'll expose myself to more potential accusations of plant, hypester, MM, libertarian, radical, granola cruncher, mobster, transsexual, and a host of other descriptive terms when internet minds run amok. My current fair valuation is $6. The high side of my valuation is $15. I base this on expected earnings and growth. Assuming numbers fall in place, I project earnings at .40 for the year. I know the company said .31 but that is the company being conservative. They already earned .10 in the first quarter. And hell, they earned .05 in the 4th quarter LAST year. That would mean (even assuming zero growth rate for the fourth quarter) that they only have to earn .16 for the second and third quarters to meet a .31 projection. Give me a break. Those are their strongest quarters. If they did .10 in their weakest quarter, they should be able to muster up at least .25 total at least for the 2 strongest quarters. So anyway, at .40 earnings, I apply a conservative/fair PE of 15 to give us a $6 share price. On the high side, you could go with a PE = growth rate. A .11 eps increase (.40 vs. .29) over last year should demonstrate a growth rate of 38% (already consistent with the 40% growth rate demonstrated in 1Q earnings). A pe of 38 for an aggressive growth co. would not be outrageous (a valuation at this level would assume a naz small cap listing - my $6 valuation does not assume that listing - I do think the stock's PE will soar upon a naz small cap listing). 38 x .40 would yield a share price of $15.20. At this stage I stick with my $6 valuation and look for that price. I believe $2 is still significantly undervalued (a pe of 6-7????) and $3 is still a very good bargain on a promising company. I will raise my target price to $10 minimum upon qualification for a naz small cap listing. All of this of course would be subject to revisions as any new revenue sources (new distributorships granted, success in penetrating US or Latin American markets, acquisitions/mergers accretive to earnings, etc.) are revealed. I believe one more quarter of good earnings and wall street is going to be very impressed and deliver these kinds of valuations. I do not believe we will have to wait until the end of the year to see much higher valuations. As for the short-term, who can tell what will happen given the potential for a short squeeze. $6 is still a good target for me and, at that point, I look for the likelihood of a naz small cap listing to hold past $6. If that appears likely, then holding for $10 would be my decision. These are all my corny thoughts on this very speculative topic. Please don't lynch or hate me. I'm just expressing my very wee, little opinion on what I think is fair value. I had WFMI at $18 and thought fair value for Whole Foods Market was $35-40 and the damn thing ran to $70. I still think fair value for CREAF is $35 and it has floundered in the low 20s forever. Go figure. Looking forward to $2 soon before I begin salivating over $6. LOL Flightlessshark