Replies to post #33048 on SaviCorp (fka SVMI)

[bly03]

Bogey,

You stated that the market cap is $24 million. With 6 billion outstanding and a share price of ~0.006, the market cap would be around $36 million.

The licensing fee alone should bring in $30 million. (Granted, it is payable over the 5 years of the contract, so we don't have it in hand now.) Assuming that this contract does not fall through and we eventually do get this fee, then it by itself almost "pays" for the full current market cap. Any profit from the sales of the Dynovalves should clearly push the price higher.

Unless I am really mis-interpreting the recent PR and 8k, it seems like this stock should definitely go significantly higher once the revenues start coming in. I realize that in the past, despite being a shareholder for years, my posts about this company have not always been overwhelmingly positive. However, I honestly was not ever sure that we would see news like we did last week. The news even prompted me to add to my position which until a week ago I NEVER thought I would do again. My thinking is that in the long term, the market tends to get the price right, but in the short term sometimes it misses. My belief is that the fact that only a relatively few people are aware of this contract (or even this company) is creating a situation where the share price is (I hope temporarily) undervalued.

Of course, for this contract, (as in many contracts) the devil is in the details. We have heard that production capacity of Dynovalves had been increased (likely in anticipation of this contract), but I do not know what the per unit cost will be to make and ship the Dynovalves. In the past, Serge wanted a price point of ~400 (which I believe was too high). In fact, on the current website that was posted on this board last week, that is still the price point. If you look at the total expected revenue from this contract divided by the total number of valves to be shipped, the per unit price is ~115. (Of course, the ~400 price included installation, which the ~115 price does not.) I'm not sure what the profit margin on this ~$115 will be.

Also, another "devil in the details" is what will happen if Flying Glob is not able to as many Dynovalves as the contract calls for. However, even if Flying Glob were to only sell half as many valves as the contract calls for (and I AM NOT stating that this will be the case), then it still seems like the current stock price is a bargain.