I appreciate your model and thoughts. Just let me point out some remarks (in brackets).

It looks like the following assumptions, among the others, were included into the model:

1) an effective tax rate equal to a statutory tax rate of 35%. (During FY2013 the Company realized a $71M net loss before taxes and paid $257K of Income taxes - from Consolidated Statements of Cash Flows.)

2) a 14.75% cost of debt (through the computation of a synthetic rating of D2/D for a company with a 0% probability of failure as assumed in the article. During FY2013 the Company paid $9.04M Interest - from Consolidated Statements of Cash Flows - with an average total debt of $536.45M for the years 2013 and 2012).

3) a 30% standard deviation on stock price to compute the value of stock options. (The Hist. volatility 180 should be currently around 65.25%. The $101.9M aggregate intrinsic value of RSUs outstanding as of December 31, 2013 may be also considered as further addition to the total value of options.)

4) a $341.17M of NOL carried forward from prior years. (In the last 10-K they say: "Liquidity and Capital Resources - Since inception and through the year ended December 31, 2013, we had accumulated net operating losses of $1.14 billion...".)

Based on 1) -0.37% instead of 35%, 2) 1.69% instead of 14.75%, 3) 65.25% instead of 30% , 4) $1.14B instead of $341.17M and with an ERP based on "Operating regions" instead of "Country of incorporation" (which means 5.30% instead of 5%) the model leads to a price 11.1% higher than $99.85.

Your comments are welcomed.]]>

I appreciate your model and thoughts. Just let me point out some remarks (in brackets).

It looks like the following assumptions, among the others, were included into the model:

1) an effective tax rate equal to a statutory tax rate of 35%. (During FY2013 the Company realized a $71M net loss before taxes and paid $257K of Income taxes - from Consolidated Statements of Cash Flows.)

2) a 14.75% cost of debt (through the computation of a synthetic rating of D2/D for a company with a 0% probability of failure as assumed in the article. During FY2013 the Company paid $9.04M Interest - from Consolidated Statements of Cash Flows - with an average total debt of $536.45M for the years 2013 and 2012).

3) a 30% standard deviation on stock price to compute the value of stock options. (The Hist. volatility 180 should be currently around 65.25%. The $101.9M aggregate intrinsic value of RSUs outstanding as of December 31, 2013 may be also considered as further addition to the total value of options.)

4) a $341.17M of NOL carried forward from prior years. (In the last 10-K they say: "Liquidity and Capital Resources - Since inception and through the year ended December 31, 2013, we had accumulated net operating losses of $1.14 billion...".)

Based on 1) -0.37% instead of 35%, 2) 1.69% instead of 14.75%, 3) 65.25% instead of 30% , 4) $1.14B instead of $341.17M and with an ERP based on "Operating regions" instead of "Country of incorporation" (which means 5.30% instead of 5%) the model leads to a price 11.1% higher than $99.85.

Your comments are welcomed.]]>