Replies to post #60558 on Xechem International Inc. (fka XKEM)

[trazbull]

smart...I just found some info on the industry which actually shows an avg p/e of about 21 and p/s average of about 4....

next issue would be how much can they produce a month?, cause I have NO doubt they will be able to sell what they produce

and I too am using 2.5 billion as the o/s in my model....but I am basing my model on multiple of sales as we have no idea at all what operating margins they will experience and sales is an easier number to put your finger on. We know the sales price per unitl is about $21....so the limiting factor on the PPs as I see it will be the quantity or number of units we can produce (and sell) a month.

as a quickie, using the mutliple of 4 for mkt cap to sales and the 2.5B o/s, to get to a PPS of $2.00, they would have to produce (sell) about 5 million units a month at $21 per unit....not an issue from the demand side....just do not have insight on the production capabilities....and I know that over time, the production will be able to be increased, so looking for info on production byh year, say after 1, 2, 3, 4 years time....(as you can see I am modeling fro the long term as that is my interest here!)