Anavex Life Sciences Corp (AVXL)

[falconer66a]

Labeling error. Off by power of 10.

I have good news for you Falconer. In Cell A5 you are off by a power of 10. The calculation yields $10 billion, not $1 billion.

Well, thank you so much for discovering and exposing my error. Yes, lots of zeros to keep track of and label. Annual revenues of $10 billion, not $1 billion. I was off by an order of magnitude, a factor of 10. My spreadsheet had $10,000,000,000; I inadvertently labeled that as $1 billion. A labeling error on my part. The spreadsheet had it right.

But the rest of my arithmetic was correct. The spreadsheet kept track of the zeros. With annual revenues of $1000 per patient, with 10 million patients, the annual corporate revenues would be $10 billion. If 10% of those dropped down and are distributed as dividends, that works out to $13.00 per share. as I stated.

So far, I've played with the spreadsheet, punching in other possible data. Try 20 million patients. Then, presume Anavex sells a year's blarcamesine therapy for $5000. My spreadsheet then tells me I'd get a dividend of $130, X10 above my first calculations.

Then, if there is a 20% dividend drop down (A7), the dividend would be $260 a share.

So, there's the range. On the low end Anavex will, in five years or so, be paying dividends from $13 on up to $260. At the lowest, I'm pleased. At the highest, I'm extremely wealthy, will need some severe counseling and estate planning; what I call a camelizing situation. Matthew 19:24: "Again I tell you, it is easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of God."