More to the point, do people actually realise how many millions of dollars earnings (ie profit) OBJ will be required to show in order to simply justify the current MC of over $100 million? Until the numbers appear in the reports we will have no idea just how much the license (current or renegotiated - it makes no difference as we did not know the terms of the old agreement and won't be privy to the new terms) is worth to OBJ. Let's face it, there could be 10 license deals in effect today but until we see the dollar value of those deals the MC is clearly overvalued and based purely on speculative expectations. Given the fact that there is no proper current launch of any products and the time lag it takes for P&G to collect income for any products with OBJ tech and then the time it takes for P&G to pay OBJ their share of the spoils and then the time it takes for those payments to appear on OBJ's accounting reports (phew) then I would suggest that, even if a launch was announced today, it would be at least another 12 months before the first inkling of any real calculable royalty revenue (not profit) is available to shareholders. Meanwhile, the $4 million pa (and rising) cash burn will leave the bank balance looking decidedly miserable. Some people are clearly convinced that the royalties will be substantial but the fact is that no one has any idea what they will be be worth and they won't have any idea until the dollars appear on the reports. I guess it all comes down to how you assess the risk/reward ratio. At the current high MC, my view is that the risk is too high. All my opinion so dyor.
OBJ Price at posting:
6.3¢ Sentiment: None Disclosure: Not Held
(20min delay)