pegasus values ecq at 100% premium to sp, page-4

Hi SV,

I saw the announcment yesterday about negotiations with major retailers. How do you know they are working on sales to Woolworths? Is there some earlier announcments about that which I have missed as a newbie here.

If Woolies is 35% of all retail sales in Australia can we assume then that they sell 350million nappies? If ECQ can get into that torrent of sales what does it mean for this little company?

I was looking at the market cap at about $6million. And they say there are a billion nappies a year sold in Australia. So if the company gets say 5% of the market at 50 million nappies, how much are they making per nappy?? $0.20c? that would put them 10mil in the black in Australia every year.

I am trying to figure out a medium term valuation.