What am I missing re your observation that roughly 1% of market would get the SP to $70 when you use 8% in your formula as shown below?
Global semiconductor market in 2016: $355 billions
Amount of shares in 2016: 250.000.000 (fully diluted, together with some more shares for “happy bankers”)
P/E-ratio: 60 (according to ARM using a similar license model)
Revenue: 8% (according to the Pellegino-reports)
Now let’s do a rough calculation excluding NRE, costs and taxes- here we go:
$70 / ($355,000,000,000 x 0.08 / $250,000,000 x 60) = 0.01
As you see, from a straight mathematical point of view (no hype, no future anticipation etc. considered) the journey from $1.60 to $70 will take as long as it will take to gain market penetration of roughly just 1%.
So this will be the point when the $70-Club opens its doors: 1% of the semiconductor market using Poet-technology. Everyone who believes this can happen- welcome to the club right now.
Pecos
