PCT Ltd (PCTL)

[NextGenCapCG]

Another way to look at it is based on potential. Sure the merger is great but IMO (I know many others disagree) it doesn't add a ton of value, from an operational perspective. Sure they get a new sales channel and reduce debt, but nothing about the merger changes the fundamental value of the product (which is huge).

PCTL currently has the manufacturing capacity to make and implement 40-50 systems a month (one of the articles talked about their capacity). While prices vary, my educated guess is that the company averages about $30k+ for each system (not sure the breakdown between the system and recurring leasing/license payments which has some effect on value).

$30k*45 systems*12= $16.2mm a year in revenue. Now since it is still a growing company, I would put a pretty high revenue multiple on it. With some OTCs you see ridiculous multiples (40x+). The norm for a blue-chip co is between 1-3x. Here, let's assume a conservative 5x.

5*16.2mm= 81mm. Then divide that by 230mm shares outstanding and you get a price of about $0.35. That does not include any sort of momentum or short squeezes if they occur, etc. Also, depending on your assumptions that may be slightly over valued or undervalued if you assume a more aggressive multiple/growth etc.