I do not have a better understanding of the company than you. If so, you are in trouble. I do own shares, a tiny tiny number of them because there is potential here and I want to pay attention.
The value of the company is # of outstanding shares x share price + debt - cash.
The higher the number of shares, the lower the share price. Simply stuff. This only matters because some look at a 10 cent stock and automatically say it is cheap. You can't do that because the number of shares matter.
Great news if they are buying back and retiring shares, that would help but for a growing company there are better uses for cash so it makes you wonder.
The company made a quarter cent per share in net income this last quarter. Extend that for a year and you have a penny, Assign a PE of 20 and you get a share price of 20 cents. not bad, a double from here.
Another way to value is based on PS ratio. I'd say this type of company deserves a PS of about 2 and they are being valued much higher than this based on growth prospects so maybe they are overvalued now?
Over the long term the market will figure it out and if they continue 40% growth for a few years then it IS a great buy today. If they stumble then we're stuck.
140 million shares is not a lot??? BE very careful who you listen to on this board! Public float for this stock is 124 million shares and that is an extremely high number for such a small company. The guys that commented that it wasn't a large public float...why don't you explain your reasoning to me. I research stocks everyday that are small and mid cap stocks with market caps that are in excess of 10 to 20 times VTSI market cap yet their floats are much less than VTSI. There should be a reverse split in my opinion...
It is all relative robertson. If there were fewer shares then the share price would go up. Would you rather have 5 twenties or a single 100? Calculate the P/E based on this last quarter, and then tell me that the share price is not under priced. It is the price per earnings that matter. This company has shown that it is growing. It has great earnings PER SHARE OS! It is very transparent.
Very good analogy uptabdown. I really thought this stock would move to .14 possibly .15 but this entire market this year has not behaved normally. This company will eventually be found and like you said with your estiimate of a Pe of 20 would be around .20 cents; so I believe this should certainly be around .14 or .15 right now. I am not selling and will be holding for the long term; especially with the expected and continued growth. I hate to say this but "Rome wasn't built in a day"