BLG has the manufacturing capacity for US $170m revenue (with a bit of capex spending). At an exchange rate of 68c, that is A$250m. 40% margin gets you to $100m pa profit. A PE of 10-20 gets you to $1-2B market cap. We still don't know whether they will ever get there or how long it will take. With the progress they are making, the likelihood of success is increasing rapidly. I don't the SP will track to $1B in a straight line!
At some point, the penny must drop. Two industry leaders are backing the BLG opportunity with their time and effort. They have succeeded in the industry before and are happy to work with BLG. They wouldn't be here if it was not for the possibility of another success.
BLG Price at posting:
5.2¢ Sentiment: Buy Disclosure: Held
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