Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Nuvo Research Inc -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (11911)	1/21/2003 11:41:24 PM
From: axial	Read Replies (1) \| Respond to of 14101

Hi Claude - "Don't want to rain on the parade, but we are in a bear market." In the short term, I can buy that reasoning: I've often posted that the price will be short-term volatile. However, at some point, DMX will have earnings; at that point, it's just a question of the multiple you assign. Wolf has posted many in-depth analyses with the Pennsaid sales breakout by percentage of market penetration. There's a very good (and conservative) case for earnings of CDN $1/shr within 2 years, on Pennsaid revenues alone. In addition, there has been considerable number-running on the upfront achievable with FDA approval. For example, the oft-quoted example of Celebrex, pre-approval : US $25 million. Post-approval: $250 million. No one is suggesting that Pennsaid will achieve that multiple. But the thinking has been that it should be at least in the US $75 million range. That will give DMX approximately CDN $1.50 in the kitty, with a reasonable expectation of earnings of CDN $1.00 in a couple of years. This is aside from any other potential (ie., WF10). As you point out, it's a Bear Market. Fair enough. But I think the double-digit figure is a reasonable expectation - even if it's low double-digits. Regards, Jim