I got the Investor packet today. I'll summarize a few numbers since John won't give any details other than he's made money and there is going to be a split.
Pre-split there are 2 million shares authorized and outstanding. Issued April 96 for $1 each. 1 million shares restricted for 2 years.
Estimated 500,000 float. Incorporation in Massachusetts March 1995.
Sales in Fiscal 1995 were $750,000. Net loss $250,000.
This year sales increase 'possibly exceeding 100%.' 'Should show a substantial profit for yearend.'
Lots of info that is on the wesite...
ADA sez there are 20 million Americans who should be treated for periodontal disease, but only about 3 million will seek treatment. Demographics indicate a growing market at 10%/year.
OMGD has an agreement with BioVitamin Ag (Swiss) to market in Europe. Royalty payment of $5.20 per test (about 10% of retail price)
Profit margin is 'large' but unspecified. Average test $50. Based on the royalty payment plus extra for lab fees, I'd estimate $15 (conservative)
An company estimate using 'relatively small penetration of the market and very conservative use by each practitioner' comes out to 336,000 tests/year. I get the impression that they are saying 'If we do a terrible marketing job and things don't turn out that good, we've gotta do at least this much' rather than having the 336000 as a target.
This works out to $2.50 EPS. A 10 PE means $25 stock. I don't like to give bb stocks PEs over 10, but you can if you like. Of course, if they buy the company they mentioned in the Monday press release, that may keep the OMGD from turning a profit as quickly. No mention of how the company would be paid for. There are no authorized shares unissued, but that can change.
I don't own this stock, but I may pick some up later this week. I like a ticker that sez 'Oh, my God!' |
