Sulphco, Inc. (SUF)

ninjawombat (< 20) Submitted: 5/21/08 12:14 AM : Start Price: $4.03 SUF Score: 24.21

Description: Sulphco is company that has 15 employees, a market cap of $300M, and has been boasting zip revenue for the past 9 years.

Analysis: Assuming a P/E of 15, this stock would be worth somewhere around 0. But since they will be experiencing spectacular growth from here on, a P/E of 100, and net margins of 500%, my target price is 0. Though if that doesn't pan out, there is some downside risk and we could expect a P/E of 5 in the worst case, giving this a fair value closer to 0.

Outlook: SUF's R&D, which apparently involves soaking piles of greenbacks in crude and sulfur and setting them on fire, has been losing 30-40M a year. They make up for the loss by selling tens of millions of stock shares each year. Despite that, equity is still negative, bummer. Management has demonstrated great confidence in this company's future, so much in fact that the owner has been selling stock *every single consecutive day* for two straight months, and rightly so!

I like this stock because it made me laugh, but I would advise to wait for the price to go below zero before getting in.

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