PEB - Pacific Edge Ltd

[MAC]

Absolutely Tumeric, and of course companies as going concerns are ultimately valued on their discounted cashflows not necessarily their sales, with projected 82% gross margins, PEB will always have a very high P/S relative to other companies within the sector.

[winner69]

I have to agree winner - all 3 three times

And this means it could be "merged" before true value is realised, though could be a bit of a catch 22, as you say w69, may need people of influence to realise full value

Sharetrader seems to get itself a bit tied up on mobile devices and repeats things ....r it may be just the operator eh .... but I sure I only touched the Submit button once

[Dentie]

Yup agreed, and the context of why the ratio is so high aside, there is a big danger when with working with ratios where the numerator relative to the denominator is tiny (or visa versa) as relatively small absolute changes in the denominator (in this case) can have massive effects.

That is highlighted by the numbers that have been thrown around this morning.

Whipmoney's initial and current Price-to-Sales ratio is at 25,000+ compared to:

916x if sales are $500k (a 96.3% decline in the ratio from it's current value)
458x if sales are $1m (a 98.3% decline in the ratio from it's current value)
91.6x if sales are $5m which as baller points out only requires roughly 10,000 tests which is an underestimate based on Darlings comments (a 99.6% decline in the ratio from it's current value).

If you flip those percentages in all likelihood the current Price-to-Sales ratio is arguably well over 27,200% greater than what we would expect it to be later this year.

My point is you can get these massive swings in the value of the ratio over time when either the numerator or denominator is coming off a very small base relative to it's counterpart (check out the recently reported % changes in NZ drowning's last year compared to this year, or the serious patient safety events reported by the Health Quality and Safety Commission for our NZ hospitals for some good examples).

Therefore I'm not sure the Price-to-Sales ratio is much good of a metric in determining whether the SP is over valued or not (worth considering though of course). As Balance points out it PEB is about upside potential right now. Valuation should be based more on that than the current Price-to-Sales ratio IMHO.

........ha ha MR T ...kicking myself now - if I was paying attention in those maths classes 40 odd years ago, I would more easily be able to follow the theme of this particular & related posts

[baller18]

Buyers moving up a cent as the day goes by, 160k-ish more buyers at 1.43, 2 days ago was 1.41, now 1.42
Matter of time when 1.45 is surpassed

[Minerbarejet]

Yup agreed, and the context of why the ratio is so high aside, there is a big danger when with working with ratios where the numerator relative to the denominator is tiny (or visa versa) as relatively small absolute changes in the denominator (in this case) can have massive effects.

That is highlighted by the numbers that have been thrown around this morning.

Whipmoney's initial and current Price-to-Sales ratio is at 25,000+ compared to:

916x if sales are $500k (a 96.3% decline in the ratio from it's current value)
458x if sales are $1m (a 98.3% decline in the ratio from it's current value)
91.6x if sales are $5m which as baller points out only requires roughly 10,000 tests which is an underestimate based on Darlings comments (a 99.6% decline in the ratio from it's current value).

If you flip those percentages in all likelihood the current Price-to-Sales ratio is arguably well over 27,200% greater than what we would expect it to be later this year.

My point is you can get these massive swings in the value of the ratio over time when either the numerator or denominator is coming off a very small base relative to it's counterpart (check out the recently reported % changes in NZ drowning's last year compared to this year, or the serious patient safety events reported by the Health Quality and Safety Commission for our NZ hospitals for some good examples).

Therefore I'm not sure the Price-to-Sales ratio is much good of a metric in determining whether the SP is over valued or not (worth considering though of course). As Balance points out it PEB is about upside potential right now. Valuation should be based more on that than the current Price-to-Sales ratio IMHO.

And when the sales go from 3 to 12 the media will wax ecstatic about a 300% increase in sales. Think we can safely say there will be a massive correction at some stage to the ps ratio. Until that happens its doesnt seem a particularly useful piece of information.IMHO

[kyanar]

http://www.reportstack.com/product/1...13-update.html

It's not a stock report at all, just an analysis of PEB products and where they're at in the development cycle. Information you could probably get by asking PEB directly, probably not worth the $750 unless you're also a diagnostic company trying to compete.

[Dentie]

Looks like we are about to test the all time high for the 3rd time....blue sky above!

See what it's like at the end of the day.....

[baller18]

Buyers keep stepping up on the buy side. Allgud if it increases one or two cents everyday, no need for a big increase if it does that : d

[Harvey Specter]

Not likely today, highest intraday trade @ 1.75. reading higher lows and upward momentum on chart though. keep holding for another announce

Yes but that was pre dilution due with the rights issue.

[baller18]

Any TA experts out there wana let me know if we finish above or $1.5 we are out of the flag?