Calypso Wireless (fka CLYW)

[zabone]

Mr. Beanitto,

There has been some discussion in the past of comparing Calypso with Qualcomm when they first started their business. I just did a quick little financial projection (pie-in-the-sky)using the same margins that have been achieved by QCOM. It only illustrates the potential that this can have on the price if it ever follows the QCOM business model to a T. This is ONLY an illustration.

Using the same income margins of approximately 30% and the same 42 P/E ratio of QCOM, the following stock prices are based on a projected gross sales and net income values.


Earnings Sales Stock Price

$30MM $100MM $12.60
$150MM $500MM $63.00
$300MM $1 Billion $126.00
$1.2B $4 Billion $504.00


I remember trying to buy QCOM in March of 1999 for $30.00 and it was jumping so much our broker wanted to wait for the profit taking to happen before jumping in. Well, by the end of that year, the price had jumped to $800 and split 4 to 1 and we never got in.

So, even at the $100 million level, the stock should be at the $12.00 level.