Ann: Cedrus Investments Initiation of Coverage, page-2

What does everyone think of this latest research report? It offers more in terms of financials than the previous report. I'm wondering about a couple of things. The revenue forecasted for FY18 is $5,331,357, but Orthocell's revenue in the report for the half year ended 31 December 2017 was $488,575. Does this mean that for the half year ending 30 June 2018, revenue will be $4,842,782? How could this be possible? Has the CelGro device for the suture-less repair of soft tissue caused a sudden jump in sales?

Also in regards to the DCF methodology used to value the company, Cedrus have said that they expect the share price to be $1.66 by end of FY19. This would coincide with the regulatory approval of CelGro - the report states: "Currently the company is marketing the CelGro® platform for dental implantation applications in Europe, and is preparing for commercialization in the U.S. and Australia in FY2019 ending on 30 June 2019."

This would suggest that CelGro still has a way to go so will not be a major revenue generator in 2018 - where is the majority of Orthocell's revenue coming from at the moment? Is the forecasted revenue for FY18 and the price target of $1.66 by end of FY19 realistic?