NanoLogix Inc (NNLX)

[capitalismforever]

What would it take for nanologix, in the most extreme hyper-exuberant situation, to be valued at $0.07 per share? Let's look at the math:

Current share price: $0.072 pps
Industry Average PE: 58.8
Industry Average net margin: 15%
Shares Out.: 145,814,222

Assumptions:
PE: 100
Net Margin 25%

$0.072 / 100 = $0.00072 (EPS)
$0.00072 * 145,814,222 = $104,986 (Earnings)
$104,986 / 25% = $419,944 (Revenue)

So in order to justify a $0.072 pps, the company would require three things:

1. That fair value equals 100 PE
2. Net Margin is 1,000 basis points better than the industry average.
3. The company produces $420k per year in revenue.

Problems:

1. 100 PE isn't realistic for any company.
2. Net Margin isn't realistic due to the company's average annual expenses.
3. Point #2, company's average expenses are in excess of $1m per year which means revenue would have to produce $1.4m in revenue.
4. The company doesn't produce $420k in annual revenue. If they did, they'd let you know. They send out emails letting you know when they sell $1,000 worth of product. I assure you, if they sold $420k, you'd receive 20 emails per day.

Common sense dictates even at extreme illogical assumptions, nanologix is extremely overvalued.