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Skystar Bio Pharmaceutical Company Message Board

  • osubuck30 osubuck30 Jun 11, 2010 12:08 PM Flag

    Might have finally turned the corner!

    I think the panic is finally over. Run the numbers at $6 the company even with 4 million more shares was only valued at $66 million which would be about $9.50 before dilution (very cheap considering the new money will add revenue and profit from an acquisition).

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    • Could you offer your method of calculating value ? Just curious.

      • 1 Reply to mazzajohn
      • They currently have 7.1 million shares. Stockholder equity is around $56 million or $7.88 per share currently. Now I am assuming a worst case of 4 million shares issued at $6 thus raising $24 million.

        I don't have any clue about the potential acquisition but giving the prepayments of over $12 million so far I am thinking at a minimum it will add $2 million in net income. Now I thought they could do about $13 million without an acquisition. Now we are at $15 million with worst case of 11.1 million shares giving a eps of $1.35 or a forward PE of about 5 now. I think the real growth will start next year with ramp up of new vaccine plant and the fish vaccine plus the acquisition integration could give current products more potential customers. Over $20 million in net income will be very likely in fiscal year 2011 or eps of $1.80.

        Keep in mind at that point stockholder equity should be at least $100 million or $9 per share with 11.1 million shares.

        These are numbers I have in mind and that is why at current prices for a long term investor its very CHEAP!!

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