Probability of success
posted on
Mar 19, 2015 04:43PM
No one is going to buy us out unless we show and have a history of substantial earnings per share. Lets examine that aspect.
Pick a share price, any price from $2.00 to $5.00 or higher. Use a multiple of 10, the PE ratio and you calculate the estimated annual earnings. Multiply that by the number of outstanding shares, approx. 295 million and the result is the amount of actual annual profit.
The first thing we need to happen is that any or most of the future settlements should be in the range of high 6 or 7 figures.
Even if that were to bring in about 20 millioin, its a one time deal, so you can't continue to count that except for a single year or two which would split that amount if half.
The remainder would have to come from license agreements. Using those profit dollars calculated above less any settlement amounts you choose to estimate, the license amounts would have to total anywhwere from 50 to130 million dollars annually.
Since we have no idea how much a typical license agreement is worth, the question is will the amounts be substantial enough and ongoing to make up these extremely high profit dollars.
In todays world the technology is updated so fast, the longer we wait for agreements the less chance we will have for any degree of success, either because our platforms are not as unique as we think or companies have designed around our patents, or they don't feel that license amounts are approriate for the use of the platforms.
All in all, the success probility is quickly diminishing month by month, we need to implement strong settlement strategies, if we have not, and we urgently need sales or license agreements of significant amounts if we want to see even a minimal share price of a few dollars.
We have no idea if any of this is happening, thats pretty frustrating for any shareholder. What is our chance of a return on our investment?