Something is seriously wrong with your numbers. Do you think VNTV will have a net income of $660,000 or $6.6 million?
At $660,000, that will be substantially less than last quarter. In the quarter ending June 30, they posted after tax earnings of $.25, or about 3.25 million. This company has shown steady growth. In start-ups, I don't look at trailing earnings, since they are incurring all kinds of start-up expenses, revenue hasn't stabilized, etc. I think VNTV should have forward looking earnings of $2.00/share over next 2 months. That's only double. At a very reasonable P/E ratio (for these types of companies), of 40, that gives us $80 stock price. If they grow 50%, and P/E ratio is 50, then we are talking 75. If they grow 50%, and P/E ratio maintains at 60, then it's 90. If P/E ratio drops to 50, and stock grows 20%, then its the stocks at 60. So where's the problem?
BTW, I own 75,000 shares of VNTV, bought at avg. price of 12. So, I ave seriously put my money where my mouth is. I am not a professional investor, but I made some money on other investments, and I was at IFMX when they went public, so got a nice nest egg together. I was just an employee, not an exec or anything.
I also am active board member of 5 or 6 little start-ups. I own 1.5 million shares (.05 each) of one, which is currently valued at $4/share by VC, and may go public next year at 15. One is a total write-off (but only have $10K invested) and the others are progressing. So, I am good at this. |
