Replies to post #76598 on Cytodyn Inc (CYDY)

[LifeLongLearner]

Black-ops,

What is the 10% / year dilution based on? That creates a pretty strong head wind for PPS growth.

[Amatuer17]

There is problem in basic calculation.

CYDY has 10 employees. To achieve a sales target of $483 million in 1st year - check how much staff will be needed, how much working capital needed and how much dilution needed.

The current cash position will not allow the co to run for even 3 months and buy inventory from Samsung.

Check S&A expense for pharma co with $1 B revenue.

[Black-Ops]

I am using an estimated 700 million shares. Change your spread sheet and all changes.

Your PE is conservative beyond anything I have seen since 1974 when some companies were technical free discounting cash.

Your 4 PE Ratio is virtually impossible. My Grandkids would put together their funds and buy the company and own it with zero debt in 4 years BUT not really.

Why? Because earnings will virtually explode. If the price was nailed the PE could be 1.

Meaning? Meaning the company will probably be earning in the next year what the total market cap was 12 months earlier.

All indicates a PE of 4 is impossible. 25 is low. 50 low considering Cancer and HIV. 4 Was considered low min 1974. 8 was low.

Most younger shareholders might think such a statement is nuts.

I have witnessed this from the front lines. My shareholders became very nervous. The job was an everyday battle delivering logic as to why the stock trading at 10 times what they paid was dirt cheap. This is how I invented the Big Picture. Calm the shareholder. They were expecting the share price move.

Stock prices move on hope and fear.

Fundamentals; that means sales and earnings rule long term.

If CYDY make 1$ per share in the first quarter after FDA approval and investigations / research indicated 2$ next quarter the PE Ratio will be a minimum of 100 anticipated for that next quarter.

Its all about what they will earn the next year. What is behind you is just about nothing in the PE.

Market Caps ONLY value in my past was used only when my companies were being acquired. We, of course did the math for what that price was per share.

Also I anticipate but can not quantify huge share buy backs. Our CEO proved last week with the option and warrant convert idea that the man is brilliant. A street fighter. I anticipate after we have a few Billion $ in the bank that Nader will start share buy backs. This will increase share prices even if the PE is nailed. most likely, both move up if Nader buys back shares.