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Microcap & Penny Stocks : Decision Diagnostics Corp (OTC: DECN)
DECN 0.000001000-99.0%May 29 1:28 PM EDT
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To: NAG1 who wrote (209)5/18/2016 8:05:38 AM
From: thomas a. burke  Read Replies (1) of 267
 
Neal...a back of the napkin exercise here. Let's just assume after conversion of the preferred shares, we have an O/S of 100M. Say the "healthy amount" that J&J paid to DECN was $100M, which includes the bond with possible treble damages. That leaves us with a cash value of $1.00 per share.

Based on the following statement taken from the latest financial release regarding production and lost revenues, it is safe to assume first qtr revenues would have exceeded $400,000. It is also safe to assume they have capacity to generate quarterly revenues of $12M. Throw a 20% margin on there and you could have close to $10M in income per year...which could grow exponentially. Slap a forward P/E of 20 on there and you have a stock that should be trading at a bare minimum of $3.00 per share. I suspect it will be worth much more than that in 1 year. Of course, the company must now execute and sell the product, which I think they will do.

This problem began to clear up in late March 2016, and with the advent of adding the GenUltimate! product from Korea, shortages have been alleviated. The company’s capacity for Genstrip 50 and GenUltimate! production is now 500,000 packages per month (50 strips per package). Lack of inventory to service sales orders is estimated to have lowered sales by $250,000 or more in 1Q 2016.

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