THE NEW PNC TELECOM

This will get very boring daniel333 if all you're going to do is post the same false comments over and over again. I will generously make the assumption that you're not trying to deliberately mislead people but if you insist on posting the same false comments then I will reply with the same factual corrections:



Hi daniel333,

You seem to be somewhat confused. SimTravel has turnover of "about £12k per month", not earnings. You could confirm this by actually reading the announcement:



"the unaudited management accounts for the seven months to 30 September 2005 as shown to the Company state a turnover of £83,600"

On this basis the £2.4m purchase price represents a price to sales ratio of approximately 17 times turnover! (And note that on the numbers used in the announcement the price could even be as high as £4.1m since a further 120m shares could be issued.)

Do you understand how representative of an excessive price that is? As a rule of thumb you might consider something trading on a price to sales ratio of 1 or less as "cheap" and so it should be clear by a mile and a half and then some that a price to sales ratio of 17 is very very very expensive.

Taking into account the debt for equity swap that is due at 0.1p a share then it should be clear that a sensible price for PNC is circa 0.1p a share.

regards

JakNife