the sla equation

Alright I thought I'd put together a potential outcome for SLA in the next year.

Put simply the bottom line will be determined by three factors.

Demand - thats sorted. If you doubt this talk to me.

Supply - around 600,000 courses from Tomsk

Price - UNKNOWN (although price from other alternatives cost up to US$18,000 a course). So rather than guess the price, we'll take a conservative net profit from each course i.e. US$1,000. Taking into account the fact that the Russian govt. will subsidise the first US$1,000.

Alright so lets do this:

600,000 x 1,000 = $600m net profit before tax

Assuming a PE of 10 (conservative) with 120m shares = $50 a share. Sales from the tomsk site alone.


So you can see the main driver and the unknown is the PRICE. Supply we know. Demand we know. Sales will happen sooner rather than later.