Predictive Technology Group Inc (PRED)

[ChasingGains]

Good morning Snow,

Don’t forget that the market is generally a little more generous on its valuation of start-up companies than it is on “seasoned” or “legacy” type companies. Also, please remember that PRED operates in the life sciences/ bio-pharma industry which has a documented history of being able to extract significantly higher multiples from investors during the formative years. In fact, most start-up ir early stage companies that operate in the life sciences and bio-pharma industries initially are valued based on a multiple of “sales per share” or “EBITDA per share” because they do not generate net income during their ramp-up period.

As a side note, I can remember the time when Amazon had a P/E ratio of over 3,000 (yes, 3000) at one point during their initial years. I don’t think Amazon actually generated their first dollar of NET INCOME until after they had been operating for about 12 years!

Have a nice day. Go PRED!