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Re: None

Wednesday, 01/03/2007 1:45:14 PM

Wednesday, January 03, 2007 1:45:14 PM

Post# of 585
My PSL5 Pick- OPBL

I would have to say that this stock is the fasting growing company with the lowest PE vs their sector out their. OPBL made $.043 for the Sept qtr, however trading volumes look to be averaging at least 10% more for the Dec qtr over the Sept qtr. I believe the Dec qtr will come in at at least $.06, and mind you the Dec qtr is the weakest qtr seasonably according the CEO. So at this point, assuming a $.06+ Dec qtr, the stock is selling at a 11 PE going forward untaxed. Now, the CEO told me that he's been approached by two exchanges and will likely expound on that by the end of March. Therefore I expect OPBL to move to either the AMEX or Nasdaq by the end of the second qtr.

With revenue and EPS growth of what appears to be well over 100% year over year, which could contine all through 2007, and the fact that OPBLs peers are carrying 40+ PEs, I will very conservatively give OPBL a 30 PE going forward fully taxed should they move to a better exchange. If we assume that OPBL will make $.10+ for the Mar qtr, and figure a 35% tax rate, that would be a minimum of $.26 annualized and fully taxed EPS going forward. Attach a 30 PE to that, and you get around an $8 stock. However, I feel that $.065 fully taxed/qtr could easily prove to be way too low an estimate for the June- Dec qtrs of 2007. Therefore, I believe that once OPBL gets to a better exchange, and assuming they continue their super growth, we could be looking at a $10-$15 stock in the second half of 2007. Wade

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