RE:Musings about SP, PE multiple and JV contribution to same...In my conversation with Roger he indicated that phase 2 valuation is worth 1 billion dollars. I believe he was using an average. That valuation would likely come with a JV and the injection of cash for a piece of the company. PE does not take effect until they start seeing revenues. Phase 2 is still at trial stage. How ca you have earnings on a trial? PE comes into effect at commercialization after phase 2.
NorCalTommy wrote: Awhile back someone on the board was saying that a $1B JV would mean a $6 or $7 share price, but wait......
That would not take into account a PE multiple that (depending on the sector, i.e., pharmaceutical..) would give them a 15x to 20x multiplier....
So i would think the stock would move accordingly (factoring in the PE multiple as well), So, just a ballpark hypothetical, lets say, with ~ 165M Shares outstanding , and a $1B JV, that would be about $6 per share... But when one applies the PE multiple, (Let's say 15x), then the SP would move to ~ $90, cuz if the $1B would have come as a result of revenue, then it sure as heck would be multiplied by the PE multiplier....
Any Financial bean counters want to weigh in?
NCT