SLT 0.00% 0.7¢ select exploration limited

this should rip your face off

  1. 5,609 Posts.
    a research report i found on the SLT web site posted these figures.
    here is hoping the penny will drop for some.

    HepE expected sales pa is between 1-2m kits pa. THIS WILL BUILD UP TO THESE FIGURES.

    That deal is underway and revenue is expected within mths.
    remember CST gets revenue of some $1m pa for its kits and its capped at $130m.

    HepA expected sales pa is between 2-4m kits pa for years.


    lets make a guess on the royalty per kit?, lets say us$1 per kit ok. remember these sales are going to go for 12 years.
    that means that SLT can make around A$5m pa for years without a HepC kit right?

    If you assume they eat $1.5m pa in overhead and they have tax losses from the old telco business then its still going to earn $3.5m net. put that on a PE x 15 AND YOU HAVE A SHARE PRICE AT OVER $2.
    THATS WITHOUT THE HEP C KIT WHICH MUST BE A SILLY MULTIPLE OF THAT.

    THIS COULD BE A $5 STOCK WITHIN 2 YEARS.
    all i did here was take a look at their web site and assume a standard royalty. i think i was conservative as the royalty rate on a HepA kit would be higher since they would be sold in the west. the market is fast asleep because nobody will take the time to figure it out.

    WHAT WILL AN INSTO DO TO A BIOTECH THAT CAN LOCK IN YEARS OF REVENUE ON THREE OF THE WORLDS BEST KITS? gee i don't know...
 
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