So anyway, at this pps companies rarely have any revenue, let alone any net income. I've seen stocks as high as 50 dollars plus pps w large NEGATIVE income. The Penny world-like quantum physics -is strange-their pps (as low as it is) is usually astonomical compared to income- w equivalent PE's -based on future SPECULATIVE income of 20-1000 plus. How do u figure the ratio when the income is negative-I've seen pennies as high as 1 dollar/share w book value as low as a negative 15 dollars-meaning each share is worth negative 15 dollars in real world "assets"otherwise known as liabilities. One company had 50 million in debt and only 5k in assets and had uplisted to OTCQB-how?
Cf that to CWRN-which, including inventory-could have a net assets/stockholders equity as high as 30 million.
4.361 B shares O/S divided into the guess of 10 million net income(see previous post) is .002293052 net income/share.
So at a PE of 15 that would be a pps of 3.44c; a PE of 20 would yield a pps of 4.586c
Current pps of .0039 yields a market cap of 17 million-which is less than the inventory is worth!
.0039 is only 1/10.256 of what should be a 4c pps (at ca a PE of 17.5) and thus assumes CWRN only has 10 million dollars divided by 10.256 or 975,000 net income-and ignores future income -which should be several times greater -as we have seen from huge mine expansion and millions in additional equipment plus coming ancillary income streams
Note CWRN pps had risen as high as 3.1c before first ship -before any revenue=and is now only 1/8 of that pps-at .0039. When you finally find a rare penny co breakthrough like CWRN and yet pps falls like this -its a twilight zone world-and answer is to file current financials and uplist to ecape this bizarre world-unless big investors realize how undervalued this is.
the iron ore business is known for its current high profit margin-as I said spot is public knowledge and so is average jr miners cost-so most jr miners have a profit margin exceeding 50%. Some have negative cost due to premium ore -even without CWRN's coming ancillary income streams
Remember these pennies probably have a SPECULATIVE FUTURE income equivalent average PE of ca 50-then once co's have net income the parallel universe of pennytraders punishes them-I have yet to understand the logic-especially when most of these low priced pennies never achieve net income and fail.
There are many reasons which we are aware of-games by otc/dtc/mm/brokers/shorters/restrictions by brokers- they say because pps is below 1c and no current posted financials. Without current posted financials many brokers restrict buying as part of a new effort starting in 2011 to eliminate low priced pennies and many potential buyers have been standing on the sidelines waiting for posted financials before buying- and the improperly imposed by non regulatory for profit otc classification(based on shorters shout fire of a promotion which never occurred) is also a large drag. So we await the promised uplisting w its audited financials.
