Hey Snowey! Well, I've been banned -- limited to
Post# of 45510
Hey Snowey! Well, I've been banned -- limited to 1 post a day, only found out when I tried to post! F'ers.
Can you please post to the B042 guy for me -- tell him thanks for the lesson on company valuation that I didn't need, LOL. And remind him that PNCH is a growth company and that to get a true valuation his methodology is invalid. Let him know that THIS is how to do it --
1. Estimate the potential size of the market for the product the company is producing;
2. Estimate the potential market share that a firm could expect to control in such a market;
3. Estimate a cost structure for the industry;
4. Estimate the size the company needs to be in order to be self-funding;
5. Estimate a sales growth profile for the company;
6. Estimate the amount of capital the company requires in order to reach it's self-sustaining point;
7. Construct a simple DCF.
8. Estimate a probability that a market will be successfully established for the product, then probability weight the DCF.
Of course that presumes he can actually do some math.
TIA