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Monday, 05/05/2008 2:51:41 PM

Monday, May 05, 2008 2:51:41 PM

Post# of 35337
During our April 11th shareholders meeting.....

JG walked our group through the following hypothetical example of what the financial impact could be on Torvec shareholders from an FTV deal.

He assumed the company that aquired the rigts to manufactur and market the FTV sold only 100,000 units annually around the world at a sale price of only $65,000 each.


Here was his presentation:

100,000 units at only $65,000 = $6.5 BILLION in Revenue

Torvec receives 5% of GROSS SALES = $325 million.

Add to that what Torvec earns in profits from the sale of 100,000 or more units of each of their patented technologies.

100,000 Steer Drives for $3,000 = $300 million

100,000 IVT's for $2000 = $200 million

Add Differentials, CV Joints, Tracks, etc, etc.


The total profit JG assumed was $625 million = $325 million from their 5% + $300 million from the profits on the per unit sales of their patented technologies

JG divided $625 million by 40 million shares outstanding to reflect the total number of share following the exercise of all outstanding options, warrants, and their commercialization event plan.

This produced a number of $15.625 PER SHARE IN EARNINGS.

If that wasn't enough of an eye opener when compared to the current share price, he then reminded the group that the above share price would give Torvec a P/E of only 1.

He then put a 10 P/E on the above earnings = $156 share price

40 million shares times $156 per share = a $6.24 BILLION MARKET CAP

He closed this hypothetical example by stating that it was due to the tremendous opportunity just outlined above that he and Keith have been steadfast in their determination to not sell Torvec cheap, even though they have had offers to do just that, because is his words, and I'll quote him, "We're playing for all the tea in China."


He concluded by asking our group to consider how much an auto manufacturer like Ford, GM, Nissan, etc. might be willing to pay in cash or stock today for a future revenue stream like that which the FTV would produce, and to which there would be no competition from the other auto makers because the entire vehicle's design including it's components have been patent protected around the world.

Needless to say, today's news from Torvec seems to support his thesis, especially when you consider that the price the Air Force is paying is $100,000 instead of $65,000 and when you quickly realize that they could sell 100,000 units annually only for fire & rescue.

FYI...every $1 Billion in cash/stock equals $25 per share for Torvec. And as much as I'd love to see the stock rise to $156 over the years to come, I'll gladly take a Billion or two in cash or stock today.


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