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Re: itsdetatti post# 5457

Friday, 03/14/2014 2:50:46 PM

Friday, March 14, 2014 2:50:46 PM

Post# of 12606
I think it's more like $40,000 per patient in reimbursement, but BICX only sees 10% of that as royalty from franchised clinics. It's unclear to me how many company owned clinics they have right now but I think it is 0 or 1. In other words, I predict almost all of their revenue will come in the form of royalty payments from franchises, which is more like $4000/patient. That being said, it doesn't matter to me how they increase their revenue as long as it is compounding.

To support itsdetatti's logic with an even more optimistic outlook on PPS, check this out: A company with just $13M of revenue last year just IPO'd with a market cap of $1.4B which popped up to $3B by the end of the first day of trading:

http://finance.yahoo.com/blogs/the-exchange/castlight-health--most-overpriced-ipo-of-the-century-134049448.html
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