Bangi Inc (BNGI)

[stervc]

CPBM:OTCBB**Major Fundamental Valuation Opinion…

Before reading anything further to consider the $6.00+ and $18.00+ fundamental valuations of CPBM:OTCBB, I think one should first quickly peruse their website below to get a quick understanding of what we are about to discuss:
http://www.c-pharma.net/


CPBM:OTCBB released news below on Jan 13, 2011 where the company was given a valuation by a third party of $122 million:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58759417
(For some reason, the news never hit the wires although it was confirmed to be real.)

Before I explain what the $122 million ”could” fundamentally mean for our share price, let’s see if what they are offering as a company is logical enough to believe that a market exists that could justify CPBM being given a valuation of $122 million.

Courtesy of Computerbux email from the CPBM CEO on 18 Jan 2011 below, the valuation of $122 mil was based on sales, business plan execution, market, I.P. and other various factors taken into account and discounted rather heavily. The firm who performed the analysis is a reputable European company based in Geneva that specializes in these types of valuations:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58905651

Also, the CEO has recently confirmed the Outstanding Shares (OS) that was recently announce in the PR to be 20 million shares as the CEO personally owns 4,960,000 shares as indicated below:
http://finance.yahoo.com/q/ir?s=CPBM.OB+Insider+Roster

Cyplasin (CPBM:OTCBB) recently confirmed that out of the 20 million shares in the OS, nearly 15 million share are restricted leaving a remaining for which he confirmed to be 5 million shares in the Float. The CPBM CEO then confirmed that out of the 5 million shares available within the Float, 3 million of those shares are held by long term investors technically leaving only roughly 2 million available within the remaining Float to purchase.

Courtesy of BeachCracker, below is the patent information for CPBM and other DD:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59105572
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59106199
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58932678
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58903646

U.S. Patents:
http://www.patentdocs.org/2008/01/patent-profil-1.html

Japanese Patent:
http://www.newswire.ca/en/releases/archive/May2008/23/c3800.html

Australian Patent:
http://rapports.cnw.ca/en/releases/archive/May2008/30/c6454.html

Cyplasin (CPBM:OTCBB) has secured a worldwide, exclusive license for a platform vaccine technology from the National Institutes of Health which has applications initially for Hepatitis C; but also has use in other applications such as cancer, nervous system disorders and obesity. The licensed platform technology has had approximately $10 million invested in it prior to the Company securing the license.

Cyplasin (CPBM:OTCBB) entered into a Letter of Agreement with Minapharm Pharma for potential co-product development and distribution of Cyplasin's products within their territory. Minapharm Pharmaceuticals trades at $93.06 Egyptian Pounds on the EGX under the ticker of MIPH within the link below which is equivalent to around $16.00+ USD per share. Also, read the first PR section below to see their announcement of their agreement with CPBM:
http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=MIPH:EY

The Company is now preparing to commercialize the following products:
http://www.c-pharma.net/index-1.html

* C-Virin – is a convenient, once-a-day oral formulation of ribavirin USP. Ribavirin is FDA approved in many forms for the treatment of Hepatitis C (courtesy of deet49):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58879729
http://www.accessdata.fda.gov/scripts/cder/drugsatfda/index.cfm
http://www.c-pharma.net/index-1.html
http://www.c-pharma.net/index-3.html


* C-Pegferon –is our brand of long-lasting, pegylated-interferon-alpha-2b. This product and C-Virin will be used together for the treatment of genotype 1, 2, 3, and 4 strains of Hepatitis C virus.

* C-Vaxin – is a bivalent VLP vaccine and adjuvant combination designed to be used for the prevention of genotype-1 HCV infections or as an active-specific immunotherapy of chronic HCV disease for Hepatitis C treatment.


* C-Immune – is a genotype-1-specific human immune globulin (antibody) product made by donor plasma fractionation, used for passive immunotherapy of HCV patients who fail to respond to ribavirin and interferon, and will be developed for the prevention or delay of graft re-infection by HCV in liver transplant recipients whose livers have failed due to chronic HCV infection.

The CPBM $6.00+ Valuation:
CPBM was given a valuation of $122 million that was based on sales, business plan execution, market, I.P. and other various factors taken into account and discounted rather heavily. This was confirmed by the CPBM CEO. The firm who performed the analysis is a reputable European company based in Geneva that specializes in these types of valuations. In simple form, the $122 million valuation could have been what the total Market Capital of the company to be worth. Since CPBM is a public company, it has to be considered that the $122 million valuation was predicated upon the total dollar market value of all of a company's outstanding shares. The definition of Market Capitalization and what it ”potentially” means for us here in CPBM is listed below as derived from the formula explained within the link below:
http://www.investopedia.com/terms/m/marketcapitalization.asp

Current Share Price x Outstanding Shares (OS) = Market Cap

So, for that reputable European company that’s based in Geneva that specializes in these types of valuations to place a $122 million valuation on CPBM, it is fair to know that the valuation was being placed on the company’s worth with taking into consideration its OS. That means that the $122 million could be considered for our mathematical purposes to be known as the Market Cap.

So, if…

Current Share Price x OS = Market Cap

Then…

Current Share Price = Market Cap ÷ OS

So now let’s solve for what the Current Share Price of CPBM should be considering the $122 million Market Cap/Valuation from the formula above…

Market Cap = $122,000,000
Outstanding Shares (OS) = 20,000,000 shares

Current Share Price = Market Cap ÷ OS

Current Share Price = $122,000,000 ÷ 20,000,000 shares

Current Share Price = $6.10 per share

This means that under the Market Capital Analysis fundamental consideration, CPBM:OTCBB ”could” be trading somewhere in the area of $6.10 per share based on the formula used for deriving a current share price.



The CPBM $18.00+ Valuation:
Again, CPBM was given a valuation of $122 million that was based on sales, business plan execution, market, I.P. and other various factors taken into account and discounted rather heavily. The firm who performed the analysis is a reputable European company based in Geneva that specializes in these types of valuations so I think there is a solid chance that this company knows what they are doing.

This next valuation is predicated upon deriving an Earnings Per Share (EPS) for CPBM:OTCBB which is what will be the primary basis for assessing a fundamental valuation from reading their future filings. The primary formula that’s used to derive an EPS is below:

Revenues – Net Expenses = Net Income
Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

Let’s take this valuation one step further and make it more conservative than what I would consider the norm. Let’s calculate that from all where the $122 million was derived, based on the email from the CEO, that the Net Income would be only 25% of that $122 million valuation. With using a 25% Net Profit Margin from the $122 million, an approximate amount to consider for Net Income is indicated below:

$122,000,000 x .25 = $30,500,000 Net Income

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
$30,500,000 Net Income ÷ 20,000,000 shares = $1.52 EPS

Now we must multiply this $1.52 EPS by a Price to Earnings (P/E) Ratio to determine where CPBM should fundamentally trade. I will use 12 as a conservative P/E Ratio to derive below:

12 P/E Ratio x $1.52 EPS = $18.24 per share

This means that CPBM:OTCBB ”could” fundamentally trade within the $18.24 per share price range based on its $122,000,000 valuation that has been given to them by this reputable European company based in Geneva that specializes in these types of valuations.

As you can see for further confirmation, the Biotechnology Industry has a 44.70 P/E Ratio that can be confirmed from the link below:
http://biz.yahoo.com/p/515conameu.html

So, again, you can see that using 12 as the multiple (P/E Ratio) was very conservative indeed for the growth rate used here with CPBM. To get a better understanding of how a P/E Ratio is used to further determine the assessment of a fundamental valuation to be multiplied by the EPS is further explained within the link below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170



For those who are much more conservative than I, let’s take this company valuation two steps further and make it more conservative than what I would consider the norm. Let’s calculate that from all where the $122 million was derived, based on the email from the CEO, that the Net Income would be only 10% of that $122 million company valuation. Many know that 25% is usually considered a conservative Profit Margin to derive as Net Income, but I will take being conservative one step further and use a 10% Net Profit Margin from the $122 million for deriving an approximate amount to consider for Net Income as indicated below:

$122,000,000 x .10 = $12,200,000 Net Income

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
$12,200,000 Net Income ÷ 20,000,000 shares = .61 EPS

12 P/E Ratio x .61 EPS = $7.32 per share



But wait… For those who are still that much more conservative than above, let’s take this company valuation three steps further and make it even yet more conservative than what I considered above the norm for being conservative. Let’s calculate that from all where the $122 million was derived, based on the email from the CEO, that the Net Income would be only 5% of that $122 million company valuation. I really think that this 5% is extremely conservative, but let’s calculate it anyway below:

$122,000,000 x .05 = $6,100,000 Net Income

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
$6,100,000 Net Income ÷ 20,000,000 shares = .305 EPS

12 P/E Ratio x .305 EPS = $3.66 per share



Still, we have a price of $3.66 of where CPBM:OTCBB ”could” logically be fundamentally trading based on its $122,000,000 valuation that has been given to them by this reputable European company based in Geneva that specializes in these types of valuations. Keep in mind too that the two conservative valuations were derived using 12 as a conservative P/E Ratio. As you can see for further confirmation, the Biotechnology Industry has a 44.70 P/E Ratio that can be confirmed from the link below:
http://biz.yahoo.com/p/515conameu.html

Still, if much of these valuations were already further confirmed on certain levels then we would already be trading in the dollars. Still, more needs to be further confirmed from the company to where the market feels more in tune with what they will medically achieve. Bottom line, the goal is to find a stock that is undervalued based on its ”potential” for what they are bringing to the market that can grant their investors substantial gains. I think we have something very special here with Cyplasin (CPBM:OTCBB) that will do just that.

v/r
Sterling