Aspreva Pharma Corp (ASPV)

[trade2live]

Any thoughts on this Pharma: ASPV

I am new to this equity trading and would appreciate any input positive or negative.

T2L

[sanjeev]

If we assume initial earnings of $116 million grow at a rate of 10.00%, and we discount those future earnings at a rate of 17.00%, we arrive at a net present value for the company's next 10 years of earnings of $838 million. To account for potential earnings beyond the 10th year, we estimate a growth rate of 6.00%, a discount rate of 12.00%, and we arrive at a continuing value of $1.10 billion. To complete the calculation we add these two figures together, subtract the long-term debt for ASPV ($100,000), and divide by the outstanding shares (35.2 million) to get a per share intrinsic value of $55.19.

By this calculation, at the minimum growth rate of 10%, ASPV appears undervalued to its Current Price of $18.49. If you think it can grow above 10% then you do the calculation.

[Rooster]

It looks like a good speculative play. It has positive eps numbers only from 2005 on. It has a low P/E and P/B, though. I'd put it in my risky biz folio. It might make more money than everything else put together if it keeps on as it has so far.

[Jim Jones]

I have recently been looking at this company also. I noticed that the stock has gone down a bit since last discussed on this board. The business model seems a bit risky. I am continuing to explore the stock and see what I can come up with.