Thursday, July 19, 2007

XELR8 Holdings Inc.

XELR8 Holdings Inc. is an AMEX listed security that has been trading in a range between $0.19 and $3.12 over the past year. With 14,197,170 shares outstanding, a recent price of $1.80 gives a total market capitalization of $26,264,765. While there are certainly larger companies, XELR8 Holdings Inc. has definitely earned its place in the pack. Last year, XELR8 Holdings Inc. created $-0.45 in earnings for every share outstanding.

XELR8 Holdings Inc. is currently priced by the market at 0.00 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, XELR8 Holdings Inc. is unlikely to be an interesting value proposition.

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