PTD unknown

Share pricing over time

  1. 22,691 Posts.
    1. PTDers may want to know what the share price could be in say two months after a successful royalty announcement . Assume that PTD will get US royalties which amount to 1.85% or greater and there will be no restrictions.

    2. Several numbers have been mentioned including a P/E=20 or say $ 9.30 (based on my projected Sept. 30, 2003 profit of $72 mill., 154 mill. shares and E/S of 46.7 cents. That assumes that the US royalties will start on 1 Oct 2002).

    I believe that this number will be achieved given time. Kwik could really put some zing into the share price if he made two statements, one to cover royalties followed by a notice that PTD would seek a NASDAQ listing.

    A listing ought to produce a P/E greater than 20, I think as the income yield from the PTD price would be compared with returns from US interest rates. After all, we are talking about reasonably certain cashflows. And PTD has other assets as well.

    PTDers need to be prepared for such an event to take place.

    3. Assuming that no immediate statement is made re a Nasdaq listing, then I would accept a target of P/E=15 or $7 in the two months after a successful Announcement re US royalties.

    I believe this target of $7 can be achieved with the aid of well placed publicity. As time progresses, I 'll be looking at a higher P/E, however a NASDAQ listing would be unavoidable anyway, in my opinion.

    4. The current price is about $2.50. If that target of $7 in the two months after a successful royalties Announcement is to be achieved, then a significant adjustment to the current share price needs to be made between now and then. The market will seek some risk cover at the same time, however.

    Those are my opinions.

    Gerry.
    (Holds PTD)
    Disclaimer. Outcomes may be different than predicted and the investor is discouraged from making investment decisions based on above mentioned data alone. I am not a financial advisor. Readers are not asked to buy, hold or sell shares and to do so will be entirely at their own risk.

 
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