This is the calm before the storm. The below ball park...

This is the calm before the storm. The below ball park valuations show us that we are still just at the starting line of this incredible story.

Inputs:
Issued shares: 27M
Ave. profit per chip: $0.50
Tax rate: 30%
P/E: 25

Using the above inputs then applying them to the market size information contained in AKP's November 2015 presentation we get the following valuations:

15% market share / 3.34B chips: $1,082 per share
20% / 4.45B chips: $1,442 per share
30% / 6.68B chips: $2,164 per share
40% / 8.91B chips: $2,888 per share
50% / 11.13B chips: $3,607 per share

The above valuations differ somewhat to my previous valuations post as for simplicity I have used the 2015 chip demand numbers. I think any valuation of this company will be based on 2017 or 2018 demand which will be greater. As such, the above numbers are conservative in terms of number of chips!!!

If we have created a near impossible barrier to entry, as our extensive 100 patent plus portfolio implies, then I don't see why we cannot ride this through to a 50% market share and beyond...unless of course we are bought out before then - IMHO, highly likely.

AKP's profit per chip may get squeezed as the buyers' order sizes increase, but at the same time, economies of scale kicks in during fabrication reducing the cost per chip. We also have a wonderful bargaining position as it's either buy from us or continue using "century old" technology. Based on my own research and discussions I am pretty comfortable with my $0.50 per chip profit expectation although I know others have assumed less than this.

One thing is certain - I am looking forward to August 2016.