NanoLogix Inc (NNLX)

[registeredfororpyct]

Mike i alredy posted this didnt know if you saw it or not ill post it again just in case.. this is my best estimate.. ive beeen making the same estimate from .50 cents

#1 what makes a stock the price it is... simply put its 1earnings..2expectation of further earnings.. and 3value all 3 of these values must be roughly annualized per year and then divided by the number of issued shares,.. and expectation of future share issues

NNLX has only very small earnings that are irrelevant right now.. we will find out soon if they will have earnings...

so that leaves us with expectations of earnings.. and value

lets start with value.. the company owns over 31 patents.. and is working on several more.. their current patents span 5 technologies from BNP BNF BNC and two technologies for slides under microscopes.. they also have patents on a process for creating hydrogen energy from microbes which was proven to work.. but is delayed for now... the estimate of the value of these patents is debatable.. but some value must be assigned to them.. my best guess is the patents are collectively worth 10-500 million dollars.. we just cant know until the products are out.. once the products are out their true value will become known

also on the front of value the company has no debt.. as well a manufacturing facility just opening, and a very highly experienced / dedicated team with interest in the companies success and lots of shares.. the value on these things could be placed at a couple million..

lastly we must consider the companies future earnings.. this is the big unknown.. but we do know some things to read between the lines.. the company has ordered more machines to manufacture the product before the first two were even set up.. they expanded the clean room to 54 machines from 36 before it was even finished.. if you like to read between the lines to estimate value as i do.. we can infer that at least 36 machines are going to be manufacturing at full capacity soon.. other wise why go through all that trouble of expansion?

36 machines producing 300 units per hour (920 theoretical) x 8 hours x 22 days a month = 1.9 million units per month x profit $1.3 per kit = ~2.5 million Earnings per month x 12 months = ~ 30 million earnings a year.. you can expect this company since it is a 'strong growth' company with many other technologies on the way to have a pe ratio likely between 15-30 or even potentially higher.. lets assume 15 for now 15 x 30 million per year = 450 / 105 million shares puts this company on my conservative earnings foretasted value about 4.28 dollars per share

now if they max out the production facility it will be closer to 7 dollars a share.. and if they license the manufacturing overseas as i expect we could be into high double digits.. also add in at least 1-5 dollar per share imo for the 'value' that will be soon realized after production is underway.. makes this a very strong stock with little/ no debt.. reserve shares to issue for cash if necessary.. expanding its r and d base.. expanding potential production base before production even starts.. imo this thing has high demand and will meet the outlines i put above.. i would look for the share price to reach the area of 2-3 dollars until the company is fully discovered.. the company will remain undervalued until news of the sales and orders come out.. then i expect well see 2-5 dollars... if we get financials that show that the company is making good earnings as stated above we'll easily see 5-10 dollars before the end of the year or early 2011... of course speculation could mean the stock could hit higher prices soon.. depending on who decides to jump in or potential buy-out

and finally share issues.. to arrive at the above price i divided earnings based on a 15 pe by 105 million shares..the value part could add an extra 1-5 dollars a share.. the company may issue more shares to pay for its ever expanding operations.. but even if they capped out at 200 million.. which i dont anticipate.. the value still remains well over 3-7 dollars

so you may ask ..if the company will be worth that much why isn't it now?? simple supply and demand

there are too few investors who follow / understand the true potential of this stock to have the cash to drive up the price this high.. and in addition the shareholders who are long will take small profits off the table at steps such as $1.. as new money comes to truly understand the stock.. (we have one investment house with shares) i expect several other investment groups will pick this up soon as the news comes out and demand will probably even outpace the value of the shares... every day its obvious more and more people are discovering the stock and if this happens more and more money will be chasing it driving prices up...