Thanks for picking up my error jlo2012, what a muppet I am....

Thanks for picking up my error jlo2012, what a muppet I am.

Let's look at net income for earnings:

Assume 4o% QoQ revenue growth for the next 3 quarters
Then 10% QoQ for the next 12 months
Costs to increase 5% QoQ over this period

Net Income - $10.36m
EPS - 1.036 cents
SP = 31 cents
P/E = 30 - about right for a growth stock.

12 months later, same growth in revenue & costs, same PE, same shares,
SP = 45 cents.

I still like it.