Monday, July 30, 2007

BSQUARE Corporation

BSQUARE Corporation is a NASDAQ listed security that has been trading in a range between $1.93 and $7.08 over the past year. With 9,789,630 shares outstanding, a recent price of $6.87 gives a total market capitalization of $62,653,633. While there are certainly larger companies, BSQUARE Corporation has definitely earned its place in the pack. Last year, BSQUARE Corporation created $0.10 in earnings for every share outstanding.

BSQUARE Corporation is currently priced by the market at 66.30 times last year’s earnings. Many trading multiples around the world are quite attractive these days, but don’t be fooled. A Price to Earnings ratio of 0 simply means that the security didn’t make any money last year.

With a share price under $50 a share and earnings per share below $1 a share, BSQUARE Corporation could be an interesting value proposition. Consistent earnings are the key to high valuations and this security is well on its way.

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