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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Hope who wrote (27491)	12/14/1998 9:58:00 AM
From: DavidCG	Respond to of 119973

CRII... moving up now..at $3 1/2..here's my earnings forecast First, general info summary. CRII makes a personal laser device to replace steel lancets diabetics currently use to stick their fingers to monitor blood glucose. Diabetics normally do this 4-12 times daily. The lasette does the same thing with almost no pain to the user. it is a quality of life issue for people that can afford the $1-$2k price tag, and I think parents would buy these units up for their children. Last week, received FDA approval, and the European Mark of approval. There are 175 million diabetics worldwide, 16 million in the USA, 239 million worldwide forecasted in 2010. idi.org.au Let's look what CRII may make in earnings from the lasette. I believe there is an almost guaranteed $500 mil market from a very small segment of diabetics who can afford this lasette device. So, Lets look at an ultra conservative earnings scenario for CRII. As of yet, I do not know how much CRII will receive in profit on each unit (a question I will be asking shortly) If CRII makes a mere $150 of profit per $1000 - $2000 unit and CRII sells only 250,000 of these units worldwide (out of a total diabetic population of 175 million -extremely plausible). That would give them $37.5 million in net profit. ($150.00 X 250K diabetics = $37.5 mil) If you believe CRII should be worth 7 times earnings. (and almost all biotechs trade 12-30 times earnings..run a stockscreener program..and see how many biotechs you can find with a P/E under 15..very tough to do) P/E of 7 X $37.5 mil = $262 million. CRII is currently worth $17 mil. Believe it or not, if CRII maintains 5 million outstanding shares, $262 mil / 5 million shares = Stock price of $52 based on a P/E of 7. That's correct. This $3 stock called CRII should be trading at $52 in the future using the most conservative numbers. Does $52 a share sound unbelievable to you? Lets lower the units sold, lower the profit per unit, lower the P/E ratio. How about CRII selling only 100,000 units worldwide, $100 profit per unit= $10 million in earnings X P/E ratio of 6 = $60 mil. With 5 million shares, CRII would then be trading at $12 a share. Since I know CRII should eventually be worth something a lot greater than $10...why in the world would I not buy here? Well, I am indeed buying. I am buying a lot. -DavidCG