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Biotech / Medical : GUMM - Eliminate the Common Cold

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To: Mike M who wrote (4099)3/11/2002 11:51:10 PM
From: Mad2  Read Replies (1) of 5582
 
Oh Mike, if you quote, please be accurate
Doesn't mean he has to buy into mad2's $18-24M proffering
Here's what I wrote;
Realistically its worth 24-32 mil max (assume 20%gp X 16 X 10)
BTW Danny, 20% X 16 refers to a assumed EBITDA of .20 of sales times sales, with 10 being a high multiple, a more resonable mult is 7 which yealds roughly 24 mil.
Figuring the value off what Gumm paid the bio-delivery guys one arrives at a figure ~40mil.
I'd pay attention to the fact our dear friends Hensley and Davidson are taking cash and moving on.
Hmmmmmm this whole Zicam thing was of their making and they'd rather have cash now, than stock or a piece of the business.
What can we learn from that?
mad2
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