Thursday, August 2, 2007

Hollis-Eden Pharmaceuticals Inc.

Hollis-Eden Pharmaceuticals Inc. is a NASDAQ listed security that has been trading in a range between $1.62 and $7.49 over the past year. With 28,951,900 shares outstanding, a recent price of $1.66 gives a total market capitalization of $48,639,190. While there are certainly larger companies, Hollis-Eden Pharmaceuticals Inc. has definitely earned its place in the pack. Last year, Hollis-Eden Pharmaceuticals Inc. created $-1.13 in earnings for every share outstanding.

Hollis-Eden Pharmaceuticals 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, Hollis-Eden Pharmaceuticals Inc. is unlikely to be an interesting value proposition. Consistent earnings are the key to high valuations and this security is not on its way.

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