A poster on Facebook wants to inform you that 71 hospitals in Taiwan are Actipatch/RecoveryRx customers!
Using beacham's estimate for 1% market penetration in Taiwan w/$10 profit/unit yields $43 million revenue:
$3 million = break even, cash flow positive: pps = .01. Each additional $2.5 million/year should result in an additional .01 increase in pps.
For revenue = $43 million, profit = $40 million (and applying the tax loss carryforward):
pps = .16 (P/E = 100)
pps = .32 (P/E = 200)
pps = .48 (P/E = 300)
However, this estimate might be very conservative, since:
1) Taiwan appears to be using the RecoveryRx (prescription) version of Actipatch, which would yield a higher profit than $10/unit.
2) 71 hospitals indicates market penetration is much higher than 1%.
Therefore, a case could be made for increasing the above estimates 10-fold or more (although tax would then need to be factored in). Now factor in the VA, veterinary and other rumored contracts and you're talking some serious money!
CONCLUSION: BUY BIEL
Bullish
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