cst and future sales

CST and Sales

CST is currently selling about 500,000 tests = $11million revenue, and is cash flow positive as of June 2007 quarter.

This year CST will do more than 1 million tests which could give it approx. $22 million revenue. Lets do some numbers on the facts, past revenue (2006-07 500,000 tests, revenue $10,654 million sales, cost of sales $5,237 million, gross profit $5,417 million 50% profit) this should be about 7cents per share with a conservative P.E. ratio of about 18.

If you do some sums and fast forward two to three years TB tests of 5 million, revenue of $95 million, cost of goods $45 million, gross profit of $50 million 50% profit (will be more profitable with in tube probably 10% more = %60 profit not calculated in below figures), earnings per share of approx 30 cents, P.E. of about 18 would give a share price of about $7 to $8 this is conservative and does not take account of when some analyst finds the company from one of the major firms and pumps the story.

There is a world market of about 50 million tests p.a.
Europe performs about 8 million tests.
France has issued new guidelines for replacing of the TST test with QFT, school age children have to undertake a TB test before gaining entry, France currently performs about 2.0 million tests.
Germany is now offering free tests for QFT and performs about 1.5 million tests.
Japan has now issued guidelines for replacement of the discredited TST test with QFT and performs around 10 million tests.
The U.S. performs around 17 million tests within the immigration, school, health, gaol system (2 million tests). Now with FDA approval for in tube testing Brookes Air Base will be able to perform over 25,000 tests per day.

Remember QFT is now in the early stages of replacing the TST test, incidentally if the TST test was going for FDA endorsement at this time it would not even pass the first stage of approval.

QFT has a monopoly product protected by a patent (2017), no competition, FDA approval in world markets and is on the edge of making huge profits. The setting up of more than 460 labs worldwide (see CST site) to use the QFT test takes time.

The above is only for TB testing there are a lot of other tests coming, for CMV, Leishmania, Lyme disease, Legionnaires, Crohn’s etc

I would like to present the above for patient INVESTORS not one week wonders looking for huge profits overnight. I would like to say how grateful I am that there is a like minded community that offers insightful information on this forum, may you keep it coming.

Cheers