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Microcap & Penny Stocks : PanAmerican BanCorp (PABN) Info and Positive Thoughts Only -- Ignore unavailable to you. Want to Upgrade?

To: pbill who wrote (305)	8/2/1998 10:58:00 PM
From: ISOMAN	Read Replies (2) \| Respond to 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.