As many have commented before, the price hinges on SALES and the...

As many have commented before, the price hinges on SALES and the subsequent cash coming through the door. The good news is there is plenty of that sitting very close to the doorstep if not already right at the doorstep. Do you think Luxinvest would put this much into something that had no future? Or do you think that they believe that their investment is going to pay multiples in the next few years?

Here's how big, sophisticated investors look at a share (well at least one way).

As noted by many a commentator on this forum, a company is only as good as its sales.

Lets assume there's a total of 10bn shares and I suspect there will be more than that by the time we're done. The defense industry has a Price Earnings Ratio (PE Ratio) of 33 - based on current earnings. This means that a share making 1c per share in earnings would be worth 33c. Forward looking PE (based on the future rather than the current earnings) is 17.

Now here's where the guess work begins. What earnings will the company have in 2013? If earnings are $10m, probably quite conservative if they get one of these decent contracts rolling, then the company should be worth $170m (1.7c) now and $330m (3.3c) in 2013. If earnings are expected to be $100m in 2014, then MST should be worth $1.7bn (17c) now and $3.3bn (33c) in 2014.

To justify a valuation of $20m (0.002c) the company needs earnings of $600,000. Which ever way you spin it, it's cheap if they can pull off one sale.....I bought some during the week.

I think, if they pull off one decent sale, then more will flood in.....I may well buy some more this week. I suspect, once those short term buyers at 0.001, who bought over the last few months and who are now sellers at 0.002 for a 100% gain are exhaused, the price will be headed north and there will be a lot of regret about "if only I had bought when it was 0.002" and "who would have guessed that was the bottom". You know we all here should be able to guess that this is as good as we'll probably ever see.

I don't think we need it so much now, but I'll say it anyway, "Good luck to all holders of Metalstorm" and to all the bashers, "no thanks for screwing our investment, but thanks for helping us to be able to buy at these bargain basement prices".