wanaB, You asked:
“this is my question that I want to hear your opinions on, What would some substantial revenue in the 3q and an announcement of a manufacturing facility do to the SP and where would it level out? To clairify substantial revenue let's just say 500k to 1M. Any thoughts on that? “
The reported cost for the shipment(s) of synDNA in the 2nd Qtr 06 was $11,656 on revenue of $37,180 or 31%. The costs would be made up of reagents, direct labor and manufacturing overhead. Let’s use 20% for reagents and 11% for direct labor and manufacturing overhead.
The March 22nd, 2006 CYGX purchase contract with GE for reagents is as follows:
2006 $350,000
2007 $750,000
2008 $1,200,000
2009 $2,000,000
Converting this to revenue and gross margin respectively (20% for reagents).
2006 $1.75M-----$1.2M
2007 $3.75M-----$2.59M
2008 $6M--------$4.14M
2009 $10M-------$6.9M
Using these figures there remains possible forecasted revenue for the 3rd and 4th qtrs of $1.38M. Since you never have zero inventory of raw materials at the end of the year, one might expect combined shipments of around $1M for the 3rd & 4th qtrs. So IMO it might be possible to ship $350K in the 3rd qtr and $650K in the 4th qtr (10 grams & 18.6 grams of synDNA respectively at $35K per gram).
The present CYGX valuation is based entirely on speculation of what synDNA and ssDNA can produce in future revenue/profits. The market cap is 128M shares times $.80 or $102M. With the share price holding at $.80 for such an unusually long time their certainly seems to be some speculative support for the $102M valuation of the CYGX.
If CYGX were to ship $350K in the 3rd qtr I would expect the share price to rise to $1.60 to $1.80 IMO.
Gutaquest
AI
