I've read a few posters in the past say that they believe a successful product would yield about $15 per share. If you have experience, please read my analysis below and correct me where I am wrong. I am trying to work through this.
I believe that the company has said that their product, if successful, should earn $4 billion/year. I'm assuming that's gross, and not net. Now, assume that net profit will be $2 billion/year (randomly chosen). If there are 750m shares, that would equate to earnings of $2.66 per share.
Now, the historical average p/e ratio of S&P 500 stocks is 15. If we assumed that GOVX's p/e will be 15, (assuming a successful product), would that not equate to a price per share of right at $40? Hype would probably drive it even higher initially.
Like I said, I am no professional. Also, I realize that p/e ratios usually trail the previous 12 months earnings. And, I realize my figures were not specifics, and will definitely alter the results. I'm really just wondering where the $15/share came from. I welcome corrective analysis. Of course, we would all love it if I was right.
I want to ask you one BIG question. If this technology works on HIV/AIDS why would you think it would be isolated to just that virus. This technology would by worth far more than $4,000,000,000. It could be worth more like a Trillion dollars. Now do your math.
If you haven't noticed, this stock has over 750 million shares outstanding. This will never be a $15 to $20 stock.
750,000,000 is a ton of shares to be out for a company so small.
Biogen, a company with numerous products, has only 288 million shares out and a market cap of $15 billion.
At $15 a share, that would give this company a market cap of $11 billion. Use common sense people.
If this stock hits $1, consider it doing well.
i am using common sense...if it got up to 10 dollars a share thats about 7.5 billion dollars considering its well over a 4 billion dollar a year industry if it works i would say thats one hell of an investment for whatever company buys them out! So yes it will hit a dollar if it works but i think if well go well above that as well!
I would love it if you were right!!! Lol but the reality is govx will probably sell out to a larger company by the time phase three trials start. Not saying that you wont make a profit..you will for sure! But i highly doubt it would go to $40 just in my opinion. anywhere from $10 to $20 would be my guess..but who knows? Maybe when it hits cnn it could drive it up lol the skys not even the limit for this stock!! Hard to predict what a vaccine like this could do in a financial standpoint.