ASC 6.67% 1.6¢ adultshop.com limited

Current Price/Earnings ratio of 4.1! Ludicrous

  1. 1,263 Posts.
    Adult shop is trading at a PE of 4.1

    By the end of the year, if the share price remains unchanged, ASC will be priced at a PE of 3.1

    Its revenue has doubled in just over a year.

    It has gone from a loss maker to a profit of $19.3 million/year in just over 12 months.

    In 3 years it will have more money in the bank then its entire market cap at 30 cents.

    It is like the tech bubble in reverse. The irrationality of the tech bubble was the pricing of stocks that made a loss. Now we have a tech company making stacks of money and rapid growth, trading at a PE of 4.

    If ASC was priced like the rest of the market, with a PE of 12 , then it would be 88 cents. By the end of they year a price of $1.32 would give it a PE ratio of 12.

    ASC wont trade at a PE of 4 forever.














 
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