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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: Ron Harvey who wrote (2280)	8/3/1998 11:20:00 PM
From: Mark B. Martell, CCM	Read Replies (1) \| Respond to of 4230

I'll concur with Ron's thought processes on this one though. I've seen the "industry" comparisons of 20-30x's P/E (reported on such places as the "unofficial" TGSK web site). Don't get me wrong, I'm all for it, but I sure would like to see the companies being compared..... I would surmise that NASDAQ listing will bring this stock up to a fair valuation, with a P/E of say 10-15. Once they diversify their economic risk into other markets, we will be hedged against currency risks. To me, that process would warrant a greater P/E on future expectations, as the market would not have to "discount" the risks associated with the Mexican economy. I believe that is what Ron is arguing here... Still.....10-15 P/E on earnings of 40cents with a high growth rate suggest a $4-6 stock price at a minimum. I'd like to see an MM short squeeze (not a spike, more like slow agonizing movement upward), which would peter the stock out approaching $8-9 per share as many sharkholders, despite their "longness", would need to pay for the party in Cancun with their newfound wealth..... Mark

To: Ron Harvey who wrote (2280)	8/4/1998 12:37:00 AM
From: Zeus549	Read Replies (1) \| Respond to of 4230

Ron, I'll try not to gripe when TGSK hit's 6 1/2. But you bring up a possible point to consider. But can you point to other companies that operate in Mexico and have PE valuations that are suffering as a result? If not, it is pure speculation. If so, then there might be a trend that one could say "well of course". I think there is some truth in what you say based on the fact that I am well aware that some investors don't trust the auditing as much. Apparently they feel that it may be easier to get the numbers "twisted" south of the border. Although there is plenty of evidence with numerous class action suits etc. right here in the good ole USA to indicate that you don't have to go south of the border to get numbers twisted.