topper's finally got some new material, page-60

re: big us rally in biotechs and drugs I am in the medical industry.NIche Oncology companies like Sirtex in the USA often have market caps in the 200-500 million usd RANGE WITH only PROSPpective FDA approvable products. Their market potentials are perhaps in the the 300-700 million in revenue range and sell at multiples of 50-150 x earnings when the products get approved if they do get approved and 10-20x sales. NOw look at this. Sirtex has already a FDA approved product. The revenues are expanding over 100 %. Operating cash flow without including capital investment last quarter was 3 million dollars or 3 million/55 million shares=5.5 cents. Gross margins are over 80 % and going to be even higher once the US plant opens in the 2nd quarter of 2006. The estimated yearly cash flow for 2006 at this pace will be over 30 cents per share without these costs as investment in plant and the other working capital costs will be diminishing. Assuming tax rate of 40 % this is 18 cents in earnings with revenues of 25 million. At 10x sales this is is 250 million for market cap . AT 30x forward earnings this is 30x 18 cents= 5.40 a share. These are modest valuations as US biotech valuations are higher and multiplew would be much higher considering 100 % + growth as the co is having due to the growth of new centers, new uses for the product,its use with new chemo drugs, off label uses, and well established partners like Pfizer and Sanofi who both have 10,000 + salesforces for marketing the combination therapy. There is now a new US medical director for the first time in company history, and the co has a plant in Massachusetts, and a corporate office in Illinois. So this is beginning to sould like a US biotech company too and word will get out of it in the USA and sp will follow up.