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Biotech / Medical : IPIC
IPIC 0.00010000.0%Dec 18 4:00 PM EST

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To: Hong-Lee Yu who wrote (738)9/28/1997 9:37:00 AM
From: Pancho Villa   of 1359
 
Hong-Le, excuse me but this seems to be a very phony way of valuing a company (At least not the waythey teach it at Graham's, and WB's, alma matter).

1. You are ignoring stochastic elements (i.e., probabilities). What leads you to believe Citicoline will be approved, much less have those sales figures by 2000. Is the probability if this "event" 1.0?

2. you are using sales as the foundation of value. One clear sign this market has gotten a bit ahead of itself is seeing people talk about revenues/sales ratios just like if these were P/E's!. Quite concerning...

3. You are ignoring Redux related liabilities (i.e., you are assigning to this "event" probability zero)
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