MM, For BICO to realistically hit $5 a LOT would have to happen.
BICO currently has 200 million shares issued. Assuming no increase (VBG), in order to realistically hit $5, BICO needs a per share profit of 10 cents per share. That would give the company a PE of 50.
10 cents per share is 20 million in profit. Assuming that BICO sells 2,500 units at $8000 each, total revenue would be 20 million. This is far short of the goal of a 20 million profit.
I've seen the Indiana facility and I don't think that BICO can realistically produce 2,500 units in a year.
Even if they could produce 2,500 in a year's time, there is no way of knowing if the consumer market will buy the machine for that price tag. The machine is not practical for a doctor's office so that market is basically closed.
Also, I've been told that the machine is not reliable so that finger pricking is still necessary. $8,000 is a lot to pay for a machine that one cannot rely on 100%.
I'm interested in your take on all this.
Best wishes, Tom |
