[nkoren]

At $10-$12, that's effectively saying that the company has the potential to grow its profits by a factor of three or four. Then it would have an industry-standard P/E ratio, roughly on par with Apple's. This sounds about right to me.

If you were to actually discount the company's future potential, then an industry-standard P/E ratio would put it at $3-$4.

[Edit: I'm not a trader, but if I were, I'd be shorting down to about $18, and buying at $9.]