Xechem International Inc. (fka XKEM)

[smartmoney77]

Traz

Here is a link on Yahoo/Finance. It shows the industry average as 35 for the PE.

http://finance.yahoo.com/q/co?s=XKEM.OB

From what I understand they will have no problem producing for Nigeria and the whole of Africa from this factory. And producing other drugs for Aids Malaria etc.

I tried to get them to give year by year revenue projections at the meeting. They said they wouldn't do that because the market was too large and just too many variables. I was thinking along the same lines as you because if we can figure the revenue projections we know exactly how much PPS will be in a year, two years etc.

I base my numbers on the August PR. I figure 200 million in revenues. I'm guessing half will be profit because of the low labor costs in Nigeria etc, using 2.5 billion as the float getting earnings of .04 and multiplying by a PE of 35 and that gives me $1.40. The PE can be higher for growth companies like XKEM.

I know that I'm doing some guessing here and that this may be a more conservative method and that the likely PPS may be two or three times this. But I'd rather be conservative.

I think it is too early to tell if we will be there in 1-2 years or 3-5 years. Once the factory is complete we will have a better idea about the timeline. One thing for certain is that we are extremely underpriced and if we took the slow track and got to the 200 million in revenues in 5 years I think we would still se a 0.25 increase in PPS each year.

The other thing is most companies PPS reflect future revenues if they are demonstratable which I think the UPS loan did.. XKEM's PPS hasn't done that yet and it should once the factory is completed. So we may not have to wait until those numbers are being produced to be rewarded here.

GLTY
Smartmoney77