It’s the simple equation of supply and demand. Currently the...

It’s the simple equation of supply and demand. Currently the demand is far out stripping the supply. That might change in a year or two but currently it is what it is.

Using words such as ethical and strong arm are playing with fire. Do you think Quidel is the only business making 87% margins? As a shareholder who has been through the last decade with this company, I expect our management to do what’s best for this company. If that means making 87% margins like other companies are doing, then that’s what they are paid to do.

The fact that ADO has never turned a profit ever, then I don’t think we can ever consider leaving money on the table at this stage. There’s other ways to give back but I for one want to see a stable profitable company before that happens.

Now what the Quidel figures highlight to me, the cost of a $20-$30 test is $3-$4. In the webinar on the Covid test, Derek said he wouldn’t reveal our margins. I’m starting to think that’s out of being embarrassed by how high they could potentially be. He did however confirm that our cost to produce the test would be inline with the market or potentially slightly cheaper.

So even if we are making $5 per test, then we are selling the test for $9 wholesale. That sounds a bit cheap for a test that will sell for on sell for potentially $20-$30.

So the reality is we can easily be making $10 per test, be cheap, and be the best. That’s us selling for $14 per test and making 70% margin.

8m x $10 = $80m

minus tax and depreciation we are looking at approximately $50m. $50m x PE 30 = $1.5B MC or about 75c per share.

That’s no Ellume revenue, no saliva test, no Covid/flu multiplex test, no USA, no Asia/Pacific, no South America, no Sepsis test and no battery technology factored into the share price.

75c share price I think we will see by the time we make our first sales. 2 bags from here in 3 months.