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Posted On: 02/27/2017 10:04:31 AM
Post# of 11803
Re: weaver_525 #200
DECN-
"Without knowing details and moving parts of the equation from what I hear is there are around 6m one touch meters and 1.5m freestyle meters in use.
5% would be 375.000 diabetics turning to DECN products buying 3 boxes per month for around $10 makes a monthly Revenue of around $11m x 12 = $132m
If we assume a net margin of 20% (without having a clue if this comes close to reality or if it could be even higher since we produce in Korea) DECN had a gross profit of $26m
Leaving costs and taxes aside 26m divided by 84m share makes cents per share.
Multiplied by a moderate P/E of 15 would make a sp of $4.5 "
I agree with your general analysis and would add that with there own meters now they won't be limited to 7.5 million one touch and freestyle users so who knows how much share they can get over the next year or two.
"Without knowing details and moving parts of the equation from what I hear is there are around 6m one touch meters and 1.5m freestyle meters in use.
5% would be 375.000 diabetics turning to DECN products buying 3 boxes per month for around $10 makes a monthly Revenue of around $11m x 12 = $132m
If we assume a net margin of 20% (without having a clue if this comes close to reality or if it could be even higher since we produce in Korea) DECN had a gross profit of $26m
Leaving costs and taxes aside 26m divided by 84m share makes cents per share.
Multiplied by a moderate P/E of 15 would make a sp of $4.5 "
I agree with your general analysis and would add that with there own meters now they won't be limited to 7.5 million one touch and freestyle users so who knows how much share they can get over the next year or two.
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