pohob, page-10

Thanks for your replies, people.

My other observation is that POH's market cap is not all that small? Again without having looked at the opportunities all that closely my guess would be that a nutraceutical application would earn them a 2-3% royalty on sales. Sales of even $300m would only deliver maybe $6m pre-tax. I understand the pharmaceutical apps are further from market, but a painkiller app could maybe generate 7% of $1bn, so $70m pretax. That would be a great result but I'm not really seeing value that is multiples of current cap after taking into account time to market, risk of further dilution and even risk of failure, although re the latter it does seem that some of the developments are pretty close to "sure things".

Any comments on my valuation thinking, which admittedly is still very rudimentary (clearly lol)