Thanks for the post- I get the point
Although I think the example should be should be $22m/711m share = 3cEPS
And if they meet lower forecast the profit seem low if ratios stay the same =24mil, that aside the logic is valid.
I am not expecting a growth stock to pay a dividend. IMO this stock wont pay a dividend they will invest in growing market opportunity. IF in China can bank roll the expansion into other markets.
Anyway
This does present that a lot growth is built into the current SP but how much growth? I tried to work it out but my numbers seem stupid as the $profit to $sales ratio is too low based on the above current profit. Keeping current ratios 396mil revenue only generates 28 mil profit which is not realistic. or is it!
A2M Price at posting:
$1.43 Sentiment: Hold Disclosure: Held
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