Actually to play around with the numbers a little in a very very simplistic fashion:At 2bn mkt cap this would have to be justified by some serious earnings expectations.Taking some very basic assumptions...Hi growth tech stocks would tend to operate around the 25-35 p/e ratiosAt best possess a 50% Op Inc margin but more likely 25% at early lifecyclye stagesSo far although the top line has tripled over the last 3 years to 30m the bottom line has not budged - we lose 19-20m every year.To justify a 2bn price tag I would think PANL has to deliver earnings of 57-80m (on a 25-35 p/e ratio).At a 50% margin (which I think hardly possible) this would be at least revenues of: $114m (35 p/e ratio) to $160m at (25 p/e ratio). So sales need to triple or quadruple.At a more realistic 25% margin then this would require revenues of: $228m (35 p/e ratio) to $320m (25 p/e ratio). Meaning sales need to increase 8-10 fold. This also seems to fit with a more typical 6-8 price to sales (currently at 80+).As I mentioned previously forward p/e is at 52 which just cannot be true implying they will earn $40m this year which doesn't correlate with the analyst expectations of 1 cent per share earnings nor reality.I think I might be looking to move to the sidelines at some point soon whilst reality catches up (by up to 10x) or valuations correct (I don't want to think about that). Otherwise acquisition premium might be the only supporting factor here but that isn't something I have heard of too much connected with PANL.There are other investments that have as strong a relative strength profile (SFSF; ARMH; CHKP; EMC; CEVA; WFMI) with more realistic fundamentals as well as attractive value plays within tech sector (CREE; AUDC; NTAP; TIBX; ALTR).I have no idea how to target an exit price though now we are into clear blue sky share price territory.a
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