Sorry, but the numbers do not work that way. For a start $12 million is a long way off, if ever. Secondly, that is revenue not profit. With the growing number of salaries to pay, costs are soon going to grow to over $5 million per annum, and that's without a go-it-alone campaign. Since PE is based on net earnings your calculations are unrealistic.....$200 million MC for just $7 million in earnings??? Dream on. This is no longer seen as a company with boundless potential, people have become more realistic about revenue expectations (except for a stubborn few). This is just the same old, same old....crap 4C followed by the ramping up chorus of "it'll be great for the next 4C"...when are you people going to wake up?? Even if net earnings are zero (ie at break even) the MC should only be around $8-10million based on a four year record of receipts for this "new" technology. Forget "disruptive technology" claims of years gone by, OBJ is now stuck in a rut of their own making, reliant on hand-outs from P&G that could well stop if sales do not stack up. Despite all the photos from Chemists and airports you will never know how well the products are doing in the eyes of P&G's management, not until the axe falls and OBJ is left out in the cold. In my opinion, and I stated this years ago, OBJ took a wrong turn in the application of their technology. They should have continued to examine medical applications instead of selling out to the FMCG arena. Sadly, they have burned their bridges and are stuck with the prospect of waiting for the disappointing royalty cheques from P&G or having a massive CR in order to take a different direction and produce a go-it-alone product. I wish you luck but have a strange feeling of deja vu....all the posts made after this 4C have been replicated for the last 4 years, the only difference is that many of the faithful have lost their faith and moved on....
OBJ Price at posting:
3.0¢ Sentiment: Sell Disclosure: Not Held
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