Innovative MedTech Inc. (IMTH)

[bliz82]

I remember back on 12/4 (post 1621) when you said there was significant reason that we'd be at .15 to .25 in the short term (in the next 30-60 days). I just think those kinds of posts lead to high expectations that are rarely met. Obviously, we just wallowed around .02 for the entire time. I do think we have some potential moving forward but it's not going to happen overnight and I doubt in the next few months. It will take a few Q's imo to see our growth and confirm more of how our products are selling. If you're basing your calculations on 200M than you must be expecting some massive sales numbers asap. Since I like to do "simple" eps/pe calculations, I'll run what I think it would take to get your .20 number.

Net Profit/O/S (future) = EPS x PE = PPS
2M/200M = .01 eps x 20PE = .20

That's a lot of net profit. How much product would we have to sell to generate 2M in net profit? 10-20M in revenue (10-20% net profit margin)? Assuming we get our 1M acquisition and sell reasonable numbers of our product, what would be a more reasonable sales number over the next 12 months? 1-3M?

Let's say we're up to 150M O/S by the middle of the year and the stock looks forward 6 months. Let's just say we somehow get 3M in sales over the next 12 months with a generous 20% net margin. That would be 600K in net profit. Is 3M too generous over the next 12 months? Probably/maybe but still possible with a 1M acquisition and sales at 300+? stores in 2010.

600K/150M = .004 eps x 20-1PE = .08 pps.

I'd be ecstatic to see us at .08 in 12 months. That's a 300% return in 12 months. If some expect .15 to .25 at any time or .50 or even dollars, have at it. I have more reasonable expectations based on our SS and reasonable sales numbers. If we use 2M in sales with a 20% net margin and a 20PE and 150M O/S we still get a nickel in 12 months. Very nice 150% return. Anything beyond that is fine with me. It is pennyland though and expectations can get out of hand which would be fine with me too! GL!