Replies to post #4909 on Pernix Therapeutics Holdings Inc. (fka PTXTQ)

[Jiminy Cricket]

$10-$20

$6 minimum

Stay on top of things and make your own decisions. You post a lot and seem to rely on other people. Don't do that

$PTX

[nsomniyak]

Rather than just throwing out a price, let's try to derive a valuation from what we know.

I'll take a shot at it based on working some numbers. In general I am trying to be conservative here.

First of all - let's say revenues are $150MM per year, stay steady, we take 5 years of revenue and discount it 20% per year. That gives a net present value of the revenue stream of $504MM.

The balance sheet is weak. It pretty much boils down to $310MM in long term debt against what are mostly intangible assets (presumably IP). For simplicity, and to be conservative, let's just say that the long term debt IS the entire balance sheet.

Again simplifying, the value to the buyer = npv of revenues minus lt debt, or $195MM.

Schwab shows 9.5MM shares out. $195MM/9.5MM shares = $20 per share and some change. Since a buyer would only buy if they can make a profit on the deal, let's say $10-15 per share.

The numbers go down if a buyer does not believe PTX can continue to deliver $150MM/year in revenues. I don't know the market position of their products.

Again, I have simplified (and may have missed something) and tried to be conservative. While this is a back of the envelope analysis and the best I can do in 5 minutes, I think a case can be made for $10-15 per share without wild positive assumptions.