Repost of Speculative Share PriceThis will hopefully play out after a major number of patients have been treated. Post from a couple of weeks ago.
Ok skys1 let's look at PE ( the share price to earnings ratio), I see you use an estimate of 300,000,000 shares to an estimated 3 billion offer to buyout the company equals $10.00. So in an established listed senior stock they have roughly a PE ratio of 20 to 25 lets use both to see what that actual individual share price would be, take $10.00 ÷ 20 = $0.50 profit a share or $10.00 ÷ 25 = $0.40 profit a share. Perhaps you know how PE works but some don't and what it means is if TLT'S yearly net profit was $0.40 and it was a slow earning senior company it could be awarded a PE multiple of 25 for that 40 cents which comes out to $10.00.
In a previous post I projected a theoretical profit! If Theralase were in its first year for only profits on NMIBC. So first year TLT might get 10% of the estimated 96,000 bladder patients from only Canada & US (ignoring the possible profit from the rest of the world) so 9,600 is 10% X 50,000 a patient or 100,000 or 150,000? Let's use 50K that comes to $480,000,000 now let's say cost to the company to earn that amount was $280,000,000 so net profit is 200 million ( all fictitious numbers ) so 200 million divided by total shares of 300 million is $0.67 profit for each share with even a low PE ratio of 20 we get $13.40. I would think if they do well they will be awarded a speculative PE ratio of 50 ( $33.50 ) or 75 ( $50.25 ).
My argument against a 3 billion buyout is the hugh profit capability of this company and in my biased opinion $10.00 is a slap in the face.