RE:RE:formula to calculate 2017 earning and SPHi Beagleboy,
With respect to the EPS you are quoting below (6.7 cents), just wondering why you are dividing the diluted shares outstanding (44,660,000 shares) by the Gross margin amount of $6,700,000.
Thx,
mike 405
A better formula...10 mill x 67% (gmp) = 6.7 million gross profit...44666000 shares divided by 6700000 = 6.7 cents...6.7 x 20(very low multiple for growth) = $1.34 Do you really think they are not going to get more contracts...a 30 multiple is more likely, (6.7 x 30 = $2.01), for the forseeable future...ESP. with the regulatory changes coming. I will go out on a limb and say 11 million sales x 67% = 7.37 million.... 7.37 x 20(conservative) = $1.47 7.37 x 25 = $1.84 7.37 x 30 = $ 2.21.... I think a $2 range is easily doable...growing too fast,good contracts,dealing with huge reputable companies, government contracts, regulatory changes will mean monster business,etc....They have a unique product , with 1st mover status!...Like the CEO says(quote):The market for our product is huge (we created it),awareness is growing and we are just in the EARLY stages of market penetration...EARLY means good growth prospects ahead! The market is not holding this down,far from it...some normal stock option selling(up big for the year,I would sell some too,but keep the majority for a higher price) The price moves around a fair bit due to lower volume AND being an undiscovered growth stock... all my own opinions...feel free to clarify/rebuke/etc. glta[/quote]