Thanks for pointing us to Redchip's research on Xena Care (XCHO), Geodan. I looked at the link you provided to Redchip and they seem very solid. I assume it is noteworthy that their Research Analysts even decided to look into XCHO and, of course, their projections for the company and the stock are positive. I read the summary and would like to ask about this projection (cut and pasted):
"We estimate that Cobroxin sales will grow from $7.5 million in 2010 to $100.4 million in 2015. Based on
projected 2015 EPS of $0.29, a P/E ratio of 10.0, and a risk discount factor of 25%, the implied fair value is
$0.96 per share. Based on projected 2011 EPS of $0.08 and an assumed forward P/E multiple of 10.5, the
average of six public, profitable nutrition supplement and homeopathic medicine companies, the implied
fair value is $0.84 per share. Our price target of $0.90 is the average of those two values. We expect the stock to move toward our target in response to quarterly financial results and announcements of significant new sales agreements, which could come at any time over the course of the year."
I am asking a question about this because I am somewhat confused (relatively new investor), but with the analysis provided above, when are they estimating XCHO will approach this target of .90 cents?....in the next year (2011)? by 2015? or they are not really saying? Thanks for helping a nube out.
AI
