SmartMetric Inc (SMME)

[skinwalker]

"In our opinion, the upside for SmartMetric is compelling assuming that management can effectively
market its products, sign deals, and manufacture the cards fast enough to meet demand. For investors,
shares of SMME are trading at a deep discount to our 12-month target value, which represents a unique
buying opportunity for the speculative investor looking for exposure to the technology sector. In
addition, a settlement or beneficial verdict from its litigation with VISA and MasterCard could mean tens
if not hundreds of millions of dollars for shareholders."

"We calculate a 12-month target average value of $0.84 per share for SMME shares. We are using a 35x
P/E multiple due to the above average revenue growth rate (2011-2014 four-year CAGR of 68.4%) and a
35% discount rate. We caution investors that our pro forma estimates are based on a number of
assumptions and scenarios which may vary materially from actual results. As indicated earlier, while we
are highly confident in the demand, the precise financial metrics may vary from customer to customer and
deal to deal. We will update the 12-month target valuation as deals are announced.
We also believe that this valuation calculation could be significantly low should the Company settle or
receive a successful ruling in its patent infringement litigation against Visa and MasterCard. Although we
have no way to determine what the damages will be, if any, when the litigation is completed. However,
based on prior cases of technology patent infringement, the settlement could reach the hundreds of
millions of dollars level, which would push our 12-month target value well beyond the $1.00 per share
mark."
http://wallstreetresources.net/pdf/fc/SMME.pdf