Oncologix Tech Inc (OCLG)

[Sooah]

$OCLG - annualized revenues to $35 million by year-end 2015 with positive EBITDA exceeding $3.6 million.

Where could we expect $OCLG to trade with these numbers? Let's take a look at what EBITDA of $3.6 million means using the Jan 2nd O/S figure of 169,780,297 and rounding it off to 200 million shares.

Earnings of $3.6 million at 200 million in O/S = 0.018 per share.
P/E ratio for the medical devices sector is ~ 16

0.018 x 16 = .288 per share IF $OCLG achieves the numbers outlined in yesterday's corporate highlight PR for 2015, $OCLG should trade at 28.8c.

We are on track to close on a potential acquisition within the next 45 days with an additional durable medical equipment company with annual revenues of approximately $9.8 million generating over $2.2 million in positive EBITDA

There is a pending acquisition that could close within the next 45 days per the statement made by the CEO. Although this acquisition will add $2.2 million in positive EBITDA, restructuring charges for this acquisition will probably not add enough profits during the first or second quarter of 2015, although it will allow the company to record profits in 2Q. I will assume that the consolidated numbers could look like this as of 2Q:

$1,1 million in EBITDA/200 million = 0,0055 x 16 = 8.8 cents per share

OR

$550,000/200 million = 0,00275 x 16 = 4.4 cents per share --->> I would go with this number as I feel it is more conservative.

3Q 2015 would look something like this:

$1.65 million /200 million = 0.00825 per share x 16 = 13.2 cents per share

http://finance.yahoo.com/news/oncologix-tech-inc-announces-1st-142600350.html

$OCLG is a great bargain at sub-penny no matter how you look at it, and this is why I like it.