Alcide Corp. (ALCD) Message Board

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Non-Tech : Alcide Corp. (ALCD)

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To: PuddleGlum who wrote (51)	9/19/1997 10:13:00 PM
From: wally	of 104

Hi Steve: I just got home. ALCD gave a great meeting. The testing was finished on Tues and the data should be sent to the USDA in early OCT. Novus paid 500m in the last quater and will pay the same over the next 2 or 3 quaters. Then it goes to 1mil per quater. The key is that we don't want this money once the rollout starts. For this is a min payment and Novus can cancel with one quater notice. On Oct 14 in NY ALCD will hold a shareholders meeting. 8 bil. birds are processed per year, and Tyson with Hudson do almost 3 bil. If ALCD can get 50% of the market and charge one cent per bird that would be 40 mil of rev. ALCD isn't confirming the one cent per bird, because Novus has the say on pricing but this is how the street is getting to 4.00 per share. With 40 mil of rev and 20% cost of goods ALCD would earn around 16mil pre tax. The profits are split 1/2 with Novus. 16mil after tax should be around 10mil. divided by 2.7 mil shares and you get close to 4.00 per share. They may charge less and get a bigger market share, but you should understand the thought process now. The cost of goods side wasn't confirmed by ALCD yet. Have a good weekend!

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