When Superconductor last opened up its books, there was plenty of red ink for investors to deal with and whatever numbers the company turns in for the fourth quarter aren't likely to be very inspiring, given the focus on the 2G HTS wire product development. For the three months ended Oct. 2, the company reported a loss of $3.4 million, or 14 cents a share, wider than a year-ago equivalent loss of $1.8 million, or 8 cents a share. Revenue declined sharply to $2 million in the quarter from $4.3 million last year.
For its part, MDB Capital offered a bold view of the heights it believes the stock could scale.
"At the present time we believe a technology based valuation is an appropriate valuation and we are using a conservative technology value at $250 million," the firm says. "With roughly 27 million shares, a $250 million value equates to about $9.00 per share."
MDB Capital continued: "We believe this number should be discounted by a significant factor to account for the risk that the company is unable to commercialize its HTS wire process. We are applying a discount of 40% to account for this risk, producing a current fair value of roughly $6.75."--Written by Michael Baron in New York.
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