First American Scientific Corp. (fka FASC)

[TRCPA]

Patrik........take a look at my prior posts to get an idea of how KDS sales numbers can move the pps.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47675216&txt2find=36|sales

D-all things remaining the same, that would equate to a $150 million market cap. (.75/share with 200 million shares outstanding).

For sake of argument and rounding (if we look at something approaching these kinds of continued sales increase numbers, it might even be conservative), let's use a 25 P/E.

That would mean that we would require earnings of $6 million for the year ($6 million earnings X 25 P/E = $150 million market cap.)

Let's add in a new variable.....earnings from joint ventures, i.e. FASC has a 50% ownership in the overseas ventures in Malaysia and Korea, and forthcoming, Brazil.

But let's start with KDS sales from outside of these ventures, and again assume for argument's sake that there will be a somewhat even distribution between those sales and sales from the overseas ventures.

Let's say the growth percentage slows, and we go from your 18 KDS sales this FY to 36 next year.....and say 60 the year after, which would be FY 2012 (Year ending 6/30/12).

30 FASC sales and 30 overseas sales = 60 total KDS sales.

Given current numbers, 30 FASC sales would yield about a $5,250 million gross margin at $175K per sale. Another 30 sales from joint ventures and overseas licensees is probably about another $750K in royalties, at $25K/per.

Say conservatively 20 of these come from the joint ventures. That would mean that the JV's are making something like $3.5 million gross margin on their KDS sales (again, at $175K/sales gross margin). Take off about $1.1 for operating expenses, and you have $2.4 million earnings.

FASC would get $1.2 million of this, based on their 50/50 partnership.

So now FASC has the following......

$5.250 million gross margin on their own sales + $750 thousand income from royalties + $1.2 million share of profits from joint ventures. That would add up to $7.2 million before operating expenses.

Now, subtract an estimate of their operating expenses (if we round, we can get to about $1.3 million based on latest history).

$7.2 million - $1.3 million = $5.9 million earnings.

So we would be there in a little over two years, following FY end 6/30/12.

Given recent history of sales increases, this is realistically in play, IMO.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=48572715&txt2find=36|sales

Charlie.....for the very short term, yes. I think those two year projections are within reach. As for now, if we go from 18 to 36 sales next fiscal year (July 1, 2010 to June 30, 2011), we're probably looking at something around .30 to .35 pps, given the same set of assumptions.

June 30, 2011 is 15 months away. Not all that long of a time.