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Friday, 02/26/2010 3:31:48 PM

Friday, February 26, 2010 3:31:48 PM

Post# of 205165
Investment thesis for Arrayit Corp ARYC

1. Arrayit Corporation is the market leader in microarray technology having the #1 position in the world with over 3500 platforms installed world wide. These platforms are installed in government, university ,private , and non-profit research laboratories.( Source public filings and Mark Schena reiterated the 3500 number in the recent public interview on the bigbizshow.com)
This platform installation is currently generating $4million in annual revenues and is expected to grow. (Source 8k 2/18/10) This gives the company extreme credibility to now launch the effectiveness of their science in the emerging molecular diagnostics market.
2. Arrayit Diagnostics (a wholly owned subsidiary). Arrayit announced that it has a test to detect Ovarian cancer at the pre-symptomatic stage. This is a blockbuster announcement . If this test proves to be effective. This will effectively wipe out the potential for women to develop late stage ovarian cancer which leads to in most cases death. With early detection the cancer can be effectively treated therefore saving lives. There are approximately 66 million annual gyno check ups every year. If the test proves effective and is approved by the FDA; then it is in my opinion that the insurance companies and Medicaid will approve and pay for and most likely demand this test be used . This will drive down their exposure and cost of expensive treatments of late stage ovarian cancer saving the billions of dollars a year. If Arrayit were to simply receive 50% of the checkups a year; 33million; and just a simple profit of $15 per test. That would create $495,000,000 in earnings per year. Yes that is not a misprint nearly half a billion in profits and the most important thing SAVING LIVES IN THE PROCESS. The current outstanding number of shares is 57 million. I would say we will probably see another 10 million issued to capitalize the company to effectively bring this test to market. So after capital cost lets just say for projections we use 67 million shares outstanding. We divide$ 495,000,000 in profits by 67,000,000 shares and we get $7.38 cents a share in earnings annually. A well accepted principal of trading is 10 times earnings. This would put this stock at 10 times $7.38 or $70.38 a share. This probably looks like pie in the sky right? We will see.
3. Lets also remind ourselves this is just one test. The power of Mirco-array diagnostics is that it will be used to diagnose all diseases in the future (IN MY OPINION). This method is rapidly being adopted. Sequenom is a stock that is currently receiving the attention of Wall Street . SQNM. I believe that Arrayit will soon and is currently being discovered and its only a matter of time before it explodes on the scene. IN my opinion the only reason we have a chance to buy this and no one seem to pay attention is this
A. It was a reverse merge on the the OTC BB and most firms don’t or cant cover these stocks.
B. The company is undercapitalized and their balance sheet looks horrific.
These two facts A. and B. above are keeping away the big boys. Once the company announces it has received a capital infusion which fixes the balance sheet and funds the rolling out of OVADX and the funding is enough to qualify it for NASDAQ .Then in my opinion the VALUE WILL EXPLODE. This is why its only $1 a share. No one believes. So in closing I can continue to show you compelling reasons to own Arrayit, but you might get bored reading all the numbers for PROSTATE , PARKINSON etc etc.. ALL I can say is look at the Market Cap of VRML (180 Million) which just has 1 test for OVARIAN A one trick pony, and then look at SQNM (market cap 400 million) SQNM has the same business model as Arrayit. Then you decide what the value is. I would also make my final point. THE TEST FOR OVADX IS A PROPRIETARY TEST < THAT IS WHY ARRAYIT WILL BE SO VALUABLE.
ALSO CONSIDER Wouldn’t Arrayit be one hell of an acquisition for a cash rich company. SAY $10