Thursday, September 27, 2018

Is Amarin's $4 billion market cap justifiable?

Im no expert but back of the envelope:

US target market $2 billion still years down the line and uncertain

Assume generous net margin of 25%

Thats earnings of $500 million - many years later, if they win 100% market share which seems optimistic

But if you discount those cash flows 5 or so years it doesnt justify the current mcap.

A real concern is how long for competitors to enter the market? It is after all only (highly) refined fish oil.

This post is not a recommendation to buy or sell any security or derivative. Stocks are not suitable for all investors. Please do your own research.



Submitted September 27, 2018 at 02:08AM by InterestingNews1 https://ift.tt/2NNo3Ek

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