June 3, 2010 - Dais Analytic Corporation (DLYT.OB) is a nanotech business focused on applications for energy recovery/efficiency and water treatment. The stock is currently trading at $0.25 to $0.30, a market cap of about $8.8 million. It just announced that it has commenced shipments on a $48M order, which, assuming 30% GM and current levels of op ex, would drive about $10M or so in EBITDA alone.
It expects to book the $48M in the next 12 months, so we are looking at a business with a trailing 12-month revenue run rate of less than $2M that is looking forward to a run rate over the next 12-months approaching $40-$50M. This kind of growth should drive a valaution of at least 4-5x EBITDA, in our opinion, which, would equate to an implied $40M to $50M valuation assuming our projected EBITDA on the recently announced $48M contract. This would, in turn, translate into a stock price target of $1.36+ assuming the same amount of shares outstanding today.
For full disclosure - the SCP Editor, and author of this commentary, is managing partner of Aspire Clean Tech Communications, which is an advisor to Dais. If you have any questions about Dais, please call us at 760-798-4938.
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