Medite Cancer Diagnostics Inc (MDIT)

[SAMNOTSAMUEL]

50 cents to $1.00 does not add up.

Crystal report says world wide 180 million paps per year.

Company has claimed potential revenue of $150 million to $450 million.

At $1.00, 450 million tests needed for that potential.

I believe if $5 to $6 turns out to be correct (that I don't know) end user would probably pay $10.

I don't know if $10 is viable or not, but I am puzzled as to what revenue potential for a company is needed before product development makes sense. Maybe $80 million of capital has gone mostly towards this first product lifetime judging by annual report.

Seems reasonable for the venture to be success, to have future profits from now (ground zero) of $280 million in 5 years to justify the capital. That is if $70 of $80 million for this product with avg holding so far of 5 years and another 5 years would mean quadrupling in 10 years capital paid in. Quadruple for the risk.

$280 million earnings in 5 years would be $56 million earnings per year average. That would mean over $100 million revenue per year average. If avg of 1/3 (180 mm paps) = 60 million tests done with this product then $2 per unit to middle man would be adequate to get $120 million revenue.

sam