Your friend Mike Lugshery is looking to invest his hard-earned money into a speculative stock. The company name is Oxbridge Inc. and has equity of $6.8 million of the balance sheet. The company had net income of $815,000 and paid dividends of $285,000. After going through the annual report, Mike was able to find that the company had 245,000 shares outstanding. The Price Earnings ratio is sixteen. If the stock price is $37.75 today, would this be a worthwhile investment for next year? What other considerations should investors incorporate into their investment decision?