Claritus Pharmaceuticals Inc. (CLAZF)

[Looking for Doubles]

The financial potential is definitely there, as long as the drug gets approved. Even with a $400 mil market in 2020 and a 30% margin, that equates to $120 Mil in profits. That's BIG !

Assuming we get even "half" of that, being a first mover, that's $60 million. With 300 Mil shares, that's $.20/share

If you look at a BMY or Lilly, a PE of 15 would be conservative. That suggests a share price of .20 x 15 or $3.00/share

Hence the reason I believe a bid will occur quickly "IF" they continue to get successful results in their testing. (Although I would hope they would resist early offers, as I believe they would be dramatically undervaluing the company - We do have other initiatives in motion.)

We already know the drug is helpful, it's now a matter of finding the "optimal" CBD level. If they overshoot and get some negative symptoms in patients, approval could get moved back as they have to redo some testing. Let's hope that doesn't happen, as it would give possible competitors time to catch up.

Bottom line: Even if we assume 10% profit margins or an early take-out bid, I have to think the shares will be worth at least $.50 -$1.00/share minimum, as the share price should shoot up on good testing results ahead of any offer. The question is "WHEN" it all happens. Definitely a great long-term investment, in "MY" opinion.