Jiangbo Pharmaceuticals, Inc.(fka JGBO)

[996]

GNPH going to $100 is that possible?

I think it is possible within one year from now:

Let's take the predicted 100 million revenues this year and add 30% growth, that makes 130 million revenues for fiscal year 2009.
Profit will be between 25-35% of that revenues, let's assume it will be 30% of 130 million. That means a profit of $ 39 million.
Assume there are 11 million shares outstanding next year (sept. '08 approx. 10.5 million). That means earnings per share 39 / 11 = $ 3.54.
If we multiply that with a PE of 30 (which is not impossible on Nasdaq for a very promising pharma company) we get an expected shareprice of $ 106.20

That means I am holding a tenbagger in my portfolio, I can't believe it !?!



Less positive outlook:
Let's take the predicted 100 million revenues this year and add 10% growth, that makes 110 million revenues for fiscal year 2009.
Profit will be between 25-35% of that revenues, let's assume it will be only 25% of 110 million. That means a profit of $ 27.5 million.
Assume there are 11 million shares outstanding next year (sept. '08 approx. 10.5 million). That means earnings per share 27.5 / 11 = $ 2.50.
If we multiply that with a PE of 20 (which is reasonable on Nasdaq for a pharma company) we get an expected shareprice of $ 50.00

Still not too bad!