Excellent suggestions by zaxdata, in my opinion. I
Post# of 11899
Excellent suggestions by zaxdata, in my opinion. I think being patient and buying slowly and methodically at various price points is the key with entering into any speculative position. One can use fundamentals as guidelines but because there are so many unknowns with speculation stocks, it is difficult. The following is just my opinionated take on how one could look at the RFMK story.
P=(P/E)*(EPS)
The question is what to give RFMK stock for a P/E multiple and what could potentially be their future EPS (earnings per share). I think the company could rather easily double its earnings each year so with 100% earnings growth the P/E could be 100. As for EPS, the Billion share O/S will require a sizable annual earnings in order to provide a decent EPS. I can imagine with national sales in full swing with webstore orders flowing and OHM selling to patients and Cheryl spreading the word nation-wide for the CannaCig, along with consulting revenues and keeping costs down and having decent margins that an initial annual earnings of $1M should not be out of the question; it should be attainable, imo. This would mean EPS=$1M/1B=$0.001/share
substitution,
P=(100)*(0.001)=$0.10/share
could be seen as the upside price target. Just my opinions. This makes the math easy because you can figure for yourself that with each million dollar more in earnings per year, the target for fair share price could go up as much as $0.10/share. So if they made $2M annually the share price could be $0.20, if they made $3M the share price could be $0.30. That is just a broad strokes guideline to view the share price that is possible for the future if certain annual earnings milestones were reached and the market paid a certain multiple for those earnings estimates, and also assuming the share structure does not change in the interim; if shares were to be bought back, those EPS values would rise and if the O/S was diluted further those EPS values would move down.
GLTY
$RFMK!