There are two ways by which I was taught in undergrad school to...

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XForceOne

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24/12/21

00:20

Post #: 58497566
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Originally posted by dachopper: ↑

My apologies.... I forgot there is the 10 million in royalties per year... so PE 7:1
70 million... that's about 15 or 16 cents per share based on current earnings.....

The science is Binary, either it works or it doesn't work, either it's worth billions or it's worth nothing.

The only way a $1 valuation can come into being, is by saying the science is worth "something", it doesn't work and it doesn't not work
..... which cannot be true.

The Either all or nothing, so I assume your basing it off nothing but JCR pharma royalties, because if you take option B that it does work, and considering now are either in the middle or towards the end of required phase 3 trials, then the valuation of $1 based on what will probably happen doesn't make sense at all, and in 6 days when the otat comes out, your valuation is completey wrong. Partially valuing something that will be either all or nothing, makes no sense.

Then again..... it's your valuation, and you can value a company however you like.

A little like valuing a gold mining company, that just found a huge amount of gold int he drill samples, the largest amount ever seen, but have not yet permission from mining to dig, and are stuck in the permissions process. They have 100 billion in gold down there that they can easily access but no permit......... they do own a 99 year lease.... how do you value a company like that?

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There are two ways by which I was taught in undergrad school to value a company:

1. Discounted future cash flows
2. Net Assets

you cannot apply the first option because right now future cash flows are zero or unpredictable. That leaves us the second option, which a few months ago I valued at just over $1. From here you are free to judge by yourself whether this is accurate or not but certainly I be won't starting an argument.

Last edited by XForceOne: 24/12/21

MSB Price at posting: $1.39 Sentiment: None Disclosure: Not Held
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