SLT 0.00% 0.7¢ select exploration limited

can someone critique these numbers - looks too goo

  1. 298 Posts.
    If SLT are on track with their prospectus as they said to you blokes who called them up, then this is how it looks:

    Taking low case scenarios:

    Income:
    Hep A: 2,000,000 per year in licensing
    Hep E: 1,000,000 per year in licensing
    Hep C: 10,000,000 per year in licensing (assuming a conservative 5x Hep A, given market size shown in prospectus)

    Exps:
    Roughly 2m in expenses as per 1.6m in prosepctus plus a bit for good measure.

    Profitability:
    With just Hep A and E, 1,000,000 in annual profit

    With Hep C around the corner, that would be 11,000,000 in annual profit

    Multiple:
    Assuming commercial deals are announced for A and E, then I would suggest a multiple of 40 would be conservative (given the potential of Hep C diagnostic kit plus vaccine products plus anti-virals)

    Assuming Hep C done deal, then lets say multiple drops to 25 (given potential of vaccine products plus anti-virals plus anything else they may come up with given their strong cash flow)

    Market Cap:
    So fellows, we are talking a market cap with Hep A and E done deals of around $40m, and with Hep C done deal a market cap of $275m

    Share price:
    Given the 21m odd shares, this equates to a sp of $1.87 with Hep A and E done and an sp of $12.83 with Hep C done deal

    Summary:
    I am no expert, but this looks like there is huge upside and the fact that SLT are responding that all is on track, means this is easily worth the punt. A bargain.

    Have I misunderstood these numbers? Please anyone out there who has looked at this, please let me know where I have gone wrong.
 
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