PositiveID Corporation (fka PSID)

[somoneysportspicks]

The 120-90 million in revenue is when all 2500 units are deployed. They said that may take up to 5 years. let's say they get the median of revenue expected, 105 million with 2500 units deployed that's $42,000 in revenue per unit . If the units are deployed equally over 5 years that's 500 units per years. In

year 1 you would have 500 units X $42,000 = 21 million in revenue.
Year 2, 1000 units X 42,000 = 42 million revenue
Year 3, 1500 units x 42,000 = 63 million
year 4, 2000 units x 42000 = 84 million
year 5, 2500 units x 42000 = 105 million revenue

With 362,060,000 shares outstanding you get revenue per share at.

year 1, 21 million / 362,060,000 = .058, 5.8 cents revenue per share
year 2, 42 mil / 362,060,000 = .116
year 3, 63 mil/ 362,060,000 = .174
year 4, 84 mil/ 362,060,000 = .232
year 5, 105 mil/362,060,000 =.29

Then they said that there margin would be 20% at 20% margin you would have profits per share of

year 1, 21mil rev x 20% = 4.2 mil/362,060,000 shares outstanding = .012, 1.2 cents of profits in year 1
year 2, 42 mil x 20% = 8.4 mil/362,060,000 = .023
year 3, 63 mil x 20% = 12.6 mil/362,060,000 = .035
year 4, 84 mil x20% = 16.8 mil/362,060,000 = .046
year 5, 105 mil x 20% = 21 mil/362,060,000 = .058, 5.8 cents of
recurring revenue for the foreseeable future.

With these earnings per share at a P/E of 20
year 1, .012x20= .24 per share
year 2, .023x20= .46 per share
year 3, .035x20= .70 per share
year 4, .046x20= .92 per share
year 5, .058x20= 1.16per share

With these earnings per share at a P/E of 50
year 1, .012x50= .60 per share
year 2, .023x50= 1.15 per share
year 3, .035x50= 1.75 per share
year 4, .046x50= 2.30 per share
year 5, .058x50= 2.90 per share

You can now see why the reverse split may be an attractive option. With a RS of 1-10 you could be back in the NASDAQ in year one at 50 PE ($6 per share) if projections are correct and after year 2 with a 20 PE ($4.60 per share)

All above are just my opinion.