Empower Clinics Inc EPWCF

Bringing back the Empower Math

[HTNYC1]

I posted this a few days ago based on a few things the CEO said but worth bringing back here - sourced from prior CEO interviews and the Empower Investor Deck:

- 4000 per day testing capability but can increase it quite easily
- ~$100 CAD revenue per test but potentially lower for bulk orders
- Currently valued at 6x forward earnings multiplier, Teladoc et al get ~40
- Current valuation ~$56m CAD as per current stock price

Discounting the rest of the business entirely and setting the ave. revenue per test at $100 CAD and keeping the multiplier at 6x you get the following over the next 12 months:

10% lab utilization: $14.4m rev @ an $86.4m valuation (1.5x current share price fully diluted)
25% lab utilization: $36m rev @ a $216m valuation (4x current share price fully diluted)
50% lab utilization: $72m rev @ a $416m valuation (8x current share price fully diluted)
100% lab utilization $144m rev @ an $832m valuation (15x current share price fully diluted)

Put simply - if they do nothing except sell and process 400 tests a day in 2021 this business is 50% undervalued

I'm obviously being overly simplistic here and leaving out a lot but suffice to say I'll be buying more first thing on Monday.

GLTA

[inviolablspirit]

If there is going to be any sense of normality again and the reopening of busineses, consistent testing is going to play a BIG role for quite some time to come.  The view that some people may have that a vaccine somehow ends the need for testing is so far from the truth and demonstrates people's lack of understanding of the science that it's mind boggling.  And it places an

[whateveryousay]

Hopefully people will at least agree to testing and masks forget the vaccine over 60% of americans are anti vaccine.

[inviolablspirit]

White Paper – Travel In A Part Vaccinated World By Dirk Singer   on December 14, 2020   At SimpliFlying we’ve published a new white paper, which looks ahead to a part vaccinated world in 2021. Our conclusions include: 1 – It’s likely that there will be some form of air travel recovery from April. Shorter haul leisure routes (e

[inviolablspirit]

Keep in mind that even people who get vaccinated will still need to be tested to enter travel bubbles and will still require to get tested if they are found to be in contact or in close contact with someone with COVID.  Like I said, testing isn't going anywhere.  It's only the beginning... and Empower will have a significant role in the continued need for testing. There are

[whateveryousay]

They are signing on big corporations who will have regular testing probably for a couple of years it looks like a good business model.

[Alioops15]

All valid points.  Our greatest problem will not be the distribution of vaccines and the time it takes to get to the needed 70 percent vaccinaton level but all the misinformation that will occur and be accepted as truth along the way.  If a lie is repeated often enough there will be some people that will accept it as the truth without question. 

[inviolablspirit]

There's no doubt misinformation will continue to hinder progress, the safety of the population and the lengthen the eventual end to the pandemic.  However, getting 70% of the population vaccinated will be a far greater task then you may realize considering you have a vast number of people who will refuse the vaccine.   In any given year less then 20-30% of the population in Canada

[north40]

Pfizer's CEO said it's not clear if the company's coronavirus vaccine will no longer be able to spread the virus to other people.