RE: RE: REALITYREQUIEMD
You appear to be a good person and sincere. For that reason, I will make one more attempt to explain my thought process to you.
But first, allow me the opportunity to defend against some of the comments you threw my way.
- Firstly, I have been a holder of this stock for over a year.
- Secondly, if I was really trying to take advantage of other investors, I would be tooting my horn that this stock is worth $10 and trying to capture profit on every upturn.
- Dreams and aspirations are wonderful, but valuation is based on how much money a company can actually make for its shareholders. I'm sure the investors of Nortel can explain that very well.
- Thirdly, I provided a snapshot opinion of where I think the SP would settle if FDA approval was granted. Surely, there is room for growth if management does their job and Pennsaid brings in revenues.
Now, projected sales in the US are expected to be about $300MM. This won't happen overnight, it will take some time. Also, any shareholder would also expect this company to continue to invest in R&D so that it can eventually bring more to the table.....this will also take time and eat up resources.
So....let's look down the road a couple of years and go with the assumption that the company is generating $500MM in sales and $30MM in earnings (6% of sales). By the time all warrants are exercised, the company will have close to 400MM shares. So.....basically we're looking at earnings per share of about $0.075/share.
I've been using a multiple of 15 because it appears to be the norm for many of the established and well run companies in this industry.
Therefore, the SP of this company, in the future can very well get to $1.13. Assuming all factors are in play as stated above.
Now......as you know, we are nowhere near that stage right now. If FDA approval is granted, are you willing to pay over $1.00 per share......I would hope not. You would wait and see whether the distribution is effective, whether the revenues can be sustained, and whether management can grow this company further.
All I'm trying to do is bring some logic to the board. It's up to each individual to decide if they wish to give it any attention or not.
I wish you all the best and I would certainly love to see this jump to $10 if it could......I would make much more money than trading it on 4 cent spreads...as you have accused me of.
BL4