Rasputin, just curious, what is the growth rate yo
Post# of 11899
Rasputin, just curious, what is the growth rate you would put on RFMK for say, end of 2013, once we (hopefully) have some real audited financials showing operating cash flow, revenues, profitability, etc? It is extremely difficult to attach a specific P/E on these micro cap start up PK stocks because since revenues have not really begun flowing yet for them they tend to be erratic trading vehicles, so I have seen P/E's in the hundreds and P/E's down in single digits, but most I see tend to suggest P/E's of about 25, 30 or 50'ish. Technically, according to the CEO, from the last filing, some metrics went up by more than 600%!! Would you call it crazy to imagine a P/E of 100 for the stock?! TIA
The other thing that complicates the EPS part (severely) is the future changes in the share structure, its as much of a moving target as the P/E. If revenues and earnings really begin rolling in there is a chance that they could use some of that money to buy back some shares if the stock remains in the gutter and the O/S is out of control which it will be if they continue to be forced into massive dilution to pay off Ironridge and other creditors while remains in sub penny for extended periods. Its hard to predict that turning point whereby there could be enough cash flow and earnings so as to really justify a stable share price versus a (hopefully) slowing expansion of the O/S. I agree that after Q2 revenues we will know much much more as far as how this story is probably going to turn out. Hopefully they push hard on the marketing side, the margins are one thing but the real key is for them to just slam through tons of sales IMO. If they can get through 20k unit inventories quarter after quarter we could have quite a spectacular story on our hands. We shall see. First we need that 10K, so one step at a time, I guess.
GLTY
$RFMK!