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REEDS, Inc. Message Board

  • fleabaggy fleabaggy Apr 7, 2014 2:29 PM Flag

    $69 million market cap, $37 million in sales

    I don't understand. I thought growing revenue was the way to go?

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    • Not too sure what the annual revenues are now. Although, I like to believe they are near $42 million. Whith that said, I don't think that the stock price should be determined by the market cap for two reasons. First, profitability: when a company is profitably, the company could trade easily beyond ten timesmearnings. Secondly, debt: debt,,especially with negetive earnings, would put much weight of a company's trading value. Debt could even make cause a company to be under value tothe market cap. Although, if REED were to be a speculative acquisition traget, the company could easily trade,five or ten times earnings. Easy! Great piont though. The,company's products do sell so just for profitability.

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