Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Spectra7: Looking Forward To A Very Bright Year

|Includes: Spectra7 Microsystems Inc (SPVNF)

Spectra7 Microsystems Just Announced The Preliminaries to what is likely to be a Very Profitable Future


Here are Some 2016 Estimates

So, if they've already received more than $1.6 Million in orders in Q1 2016, than we can extrapolate that out for the rest of the quarter. Even if we remain somewhat conservative and don't assume any acceleration in orders for the rest of the quarter, we should be looking at close to $4.8 Million by quarter's end.

Then, accounting for the fact that their quarter-over-quarter revenue increase will then be 200%, we can expect Q2 2016 to be at least 100% higher than Q1 2016 (remember, these products are just entering their initial ramp-up into market, a phase known as hypergrowth, so 100% quarter-over-quarter is by no means an exaggeration).

At that rate, 2016 could see anywhere from $20 Million to $60 Million in revenue. Given a forward Price-to-Sales of 5 (pretty conservative during the hypergrowth phase) we are looking at a $100 Million to $300 Million fair valuation for Spectra7, Right Now.

At 125 Million shares outstanding, that would translate into a fair current per share price of between $0.80-$2.40, Today. That's THIS quarter. Each quarter going forward could increase that by double for the first year, meaning by next quarter, Spectra7 shares (in U.S. Dollars) COULD be valued at as much as $4.80

Disclosure: I am/we are long SPVNF.