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scootergrrrl

10/05/06 1:33 PM

#40402 RE: wanaB #40400

here is my thinking. let's say that they come out with a highly effective vaccine for the steadily mutating bird flu. bird flu season is here so it will run on that news-highly effective vaccine, easily produced for new viral strains. then traders will finally figure out they have the means to produce the vaccine. just look at NVAX(actually their charts look very similar). it went from 1 to 5 in two months. then to 8. tibbcat and the wawh had some targets awhile back. around $4. but if a frenzy happens then it could go much higher.

they hired michael ma for some reason i assume. obviously they want to ramp up to sell lots of synDNA. i don't know how to predict the stock price on that. all i know is that the chart looks ripe.
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gutaquest

10/05/06 2:23 PM

#40404 RE: wanaB #40400

wanaB, You asked:

“this is my question that I want to hear your opinions on, What would some substantial revenue in the 3q and an announcement of a manufacturing facility do to the SP and where would it level out? To clairify substantial revenue let's just say 500k to 1M. Any thoughts on that? “

The reported cost for the shipment(s) of synDNA in the 2nd Qtr 06 was $11,656 on revenue of $37,180 or 31%. The costs would be made up of reagents, direct labor and manufacturing overhead. Let’s use 20% for reagents and 11% for direct labor and manufacturing overhead.

The March 22nd, 2006 CYGX purchase contract with GE for reagents is as follows:
2006 $350,000
2007 $750,000
2008 $1,200,000
2009 $2,000,000

Converting this to revenue and gross margin respectively (20% for reagents).
2006 $1.75M-----$1.2M
2007 $3.75M-----$2.59M
2008 $6M--------$4.14M
2009 $10M-------$6.9M

Using these figures there remains possible forecasted revenue for the 3rd and 4th qtrs of $1.38M. Since you never have zero inventory of raw materials at the end of the year, one might expect combined shipments of around $1M for the 3rd & 4th qtrs. So IMO it might be possible to ship $350K in the 3rd qtr and $650K in the 4th qtr (10 grams & 18.6 grams of synDNA respectively at $35K per gram).

The present CYGX valuation is based entirely on speculation of what synDNA and ssDNA can produce in future revenue/profits. The market cap is 128M shares times $.80 or $102M. With the share price holding at $.80 for such an unusually long time their certainly seems to be some speculative support for the $102M valuation of the CYGX.

If CYGX were to ship $350K in the 3rd qtr I would expect the share price to rise to $1.60 to $1.80 IMO.

Gutaquest