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Biotech / Medical : Zonagen (zona) - good buy?

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To: Dauntless who wrote (5631)9/22/1998 1:16:00 PM
From: Tokyo VD  Read Replies (2) of 7041
 
Dauntless,

Last month you provided your analysis of royalties from Mexico. Zonagen reported that royalty payments for one month = $167,170.

Your words: "assume Zonagen still gets less than half of the just reported royalty revenue per month - say $80,000 per month in ongoing royalties - nearly $1 million per year to the bottom line - multiply by 20 and Mexico represents over $1.50/share - just from Mexico!!"

Please explain why you multiplied the $1 million in royalties by a factor of 20 to arrive at $1.50/share from the sales of Vasomax in Mexico??

The math of $1 million in royalties from Mexico untaxed is $0.09 a share ($1 million/11.5 million shares). Taxed at a normal rate (38%), it is just $0.06.

I'm trying to understand your math.

Tokyo
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