Lol, have you accidentally found yourself on the wrong forum?...

Lol, have you accidentally found yourself on the wrong forum? Sounds like a pretty good summary of IAM to me, you just missed the decimal point between the 1 and 3.

Good announcement. The market appears to have deserted this one despite the FA not really changing as substantially as the share price. The MOU with Colorplastic and agreements with Strem and Sigma Aldrich would appear to point to the efficacy of the product. Cost cutting was also implemented to reduce managerial labour costs by 20% and director costs by 50%. The share price performance since hitting the recent low is positive.

The figures behind this stock if sales can be achieved are impressive. The following examples look at various NPAT's.

1) So assuming a NPAT of $1m (no performance shares hit, no option conversion, assumes profit stems from revenues and not substantially subsidized by grants) you have SOI 122,484,802 and EPS of 0.816 cents. So trading at PE of 15 gives you 12.25 cents, PE of 20 gives you 16.33 cents.

2) Now assuming a NPAT of $2.5m (first tranche of 22m performance shares hit, 15m options converted at $0.20 improving the cash held position by $3m, again assumes that profit stems from revenues and not substantially subsidized by grants) you have SOI 159,484,802 and EPS of 1.568 cents. So trading at PE of 15 gives you 23.51 cents, PE of 20 gives you 31.35 cents.

So really, off modest NPAT, there would appear to be plenty of upside from current levels if the BOD can deliver actual sales.

3) Now going to blue sky and assuming NPAT of $10m (all 66m performance shares hit, all 20.5m options converted at $0.20 $0.30 $0.40 improving the cash held position by $5.1m, again assumes that profit stems from revenues and not substantially subsidized by grants) you have SOI 208,984,802 and EPS of 4.785 cents. So trading at PE of 15 gives you 71.78 cents, PE of 20 gives you 95.70 cents.

I generally prefer to operate off conservative figures as I don't want to get carried away with anything but I'm also mindful that if sales are delivered interest will return to this stock and PE ratios above 20 are certainly possible.

So from these levels there would appear to be a very attractive risk/reward proposition. We have about two weeks remaining in this quarter and then it is on to quarter 4. The company has to deliver something concrete to the market in terms of sales prior to the end of the year otherwise shareholders will feel more pain. I don't think that current levels will hold on the basis of more MOU's. That's how I see it.