It seems the stock may be running on the following news story:
http://abcnews.go.com/Health/Flu/story?id=1182529&page=1
So I've seen the nanomask advertised for purchase on the Internet (at www.2hdistributors.com and www.buynanomask.com) for $7-$8. If you buy more than 1 you get a discount but I'll disregard that for now. Also, the replacable filters that go into the nanomask are advertised for $10 for a pack of 10 or $20 for a pack of 25 at these same sites. I'll assume that the company sells the nanomask to its distributors for $3 - $4 each, and the filters for $0.30 - $0.40 each. The article says they're making 100k - 200k masks a week, which implies $300k - $800k per week in revenue using my assumptions. What's not mentioned is how many filters the company is now making to be able to make a WAG on the filter media revenue.
Regardless, it seems like the company should really be ramping their revenues from this product alone.
Perhaps someone who is more versed in manufacturing and distribution business models can chime in with some thoughts on my margin assumptions above.
http://abcnews.go.com/Health/Flu/story?id=1182529&page=1
So I've seen the nanomask advertised for purchase on the Internet (at www.2hdistributors.com and www.buynanomask.com) for $7-$8. If you buy more than 1 you get a discount but I'll disregard that for now. Also, the replacable filters that go into the nanomask are advertised for $10 for a pack of 10 or $20 for a pack of 25 at these same sites. I'll assume that the company sells the nanomask to its distributors for $3 - $4 each, and the filters for $0.30 - $0.40 each. The article says they're making 100k - 200k masks a week, which implies $300k - $800k per week in revenue using my assumptions. What's not mentioned is how many filters the company is now making to be able to make a WAG on the filter media revenue.
Regardless, it seems like the company should really be ramping their revenues from this product alone.
Perhaps someone who is more versed in manufacturing and distribution business models can chime in with some thoughts on my margin assumptions above.