Deca I note that you assume the 1m test scenario in your valuation...if as you say Sonic do 500k tests in 2009 (which is consistent with my independent research) then for GBI to do 1m tests in 2010 I guess would not be a stretch given the growth in this area and the clear advantages of GBI's genotypying and screening test. That being said in 2010 assuming continued growth then GBI should be able to do 1.5m tests or more in 2011 (particuarly if HPV testing takes off in some easier-to-penetrate markets like Germany). Using a fwd revenue multiple of 7x on 2011 sales on $23.4m (1.5m tests) then GBI is worth >$3.00 in 2010! This is also an EBITDA multiple of only 12.1x!!!
What this means is that buying GBI today could easily translate into a 10-bagger. . . . which is the level where even a small investment can become life-changing. . . .
GBI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
