market size, page-10

Smilez,

Thanks, I've done some back of a beer mat calcs.

I've had a look this morning at the SCE report, and have discovered that ADO is targeting a $600m market.

As to how much they capture from this is anybody's guess. However with so many competitors, would 20% pa be a fair take?

So we are talking about possible earnings from licensing agreements of about $120m pa.

Stripping out overheads of lets say $20m pa, that leaves net earnings of $100m pa.

With 762m shares on issue, that gives a potential future EPS of $0.13.

On a P/E of lets say 50, the potential share price could be $6.56 (FX 1:1 AUD/USD).

That is potentially 93x the current share price!

I am guessing that it would take a good few years for ADO to attain this due to red tape in the bio tech sector - 3-5 years perhaps?

Still it is not a bad targeted return.

Are there any major changes that I should make to the above or any other thoughts?

Thanks