risk vs reward . is its musical chairs, page-5

Little point trying to measure future earning growth potential on available data. Simply the earnings will increase but we do not have the information to know whether it will service the debt or not. Highly dependant how the restructured company will look. Of course the bank will be reviewing based on that data rather than the way the business was headed. The way the business was headed was doomed, hence the penny stock status. There has to be changes going forward and to that end all we know is that they will dispose of 7 leaseholds, provide comfort for smokers etc etc. Anything else is pure speculation.

The numbers however in your opening post are for this year, not per annum, so somewhat misleading though matters little as with available data a rather redundant debate.

Some speculate the future is all doom and gloom, some speculate the future is somewhat rosier.

Still all speculation as factual support for either argument is missing in action.

Fairly obvious the stock is for speculators atm, not investors trying to measure the fundamentals and make informed decisions.

The only measure atm is the bank. If a bank, for a reward of 9% interest, is willing to finance a company with a market cap of 8million to the tune of $185million then the perception will be that they see potentially vast improvements in the future operations of the company. The market may react in a positive light to this even though a company with debt will have ongoing risk and perhaps a long way from being able to value on a p/e basis.

So some on this forum will speculate that the s/p will go higher. You and Koala speculate it may not. At the end of the day it is pure speculation, either way!