TATyszka

Two Nanotech Companies to Watch

You say, "CTT has guaranteed contracts of $25M for 2009 and $50M for 2010." That is simply not so.

The exact wording is that they have , "signed distribution agreements for the device [with] retail sales value of over $25 million for 2009 and about $50 million for 2010."

That is a far cry from the amount the company will actually see. From the CEO: "As the pain management medical device attains mature market levels, we believe it will reach approximately $200 million per year in distributor sales to hospitals and clinics. At that time, our revenue and profits from the device will dramatically exceed those produced by any other technology in CTT's 40-year history, resulting in approximately $20 million per year to CTT."

Note, he says, when the market reaches "maturity," the company will realize 20 million a year. At similar profit margins (and it would be a stretch to expect margins as high) you could expect 2.5 million to CTT at most, for 2009. Even if the company slashes their Cost of Revenues and their SGA costs by half, they still have 3.4 million in operating expenses or a .9 million dollar net loss.

Not trying to pooh-pooh this as a good investment idea; I just think you should present the facts with a little more proper perspective.