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| Naturol Inc. (NASDAQ OTCBB: COOX) | Six Month Target Price: $1.00 | |||||||
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Reasons to OWN COOX:
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| Valuation and Conclusion |
Valuation We think any investor looking into acquiring a position in Naturol Inc., or, for the moment, Coronado Exploration, should first look at the staggering growth of Nutraceuticals, the word is combination of nutrition and pharmaceutical, and wonder how to get into it. You then have to ask yourself, as an investor, if all of these things are extracted from plants who are the companies that are going to be the winners? You would certainly expect that among the winners would have to be one or two of the companies that produce the plant extracts that are driving this multi billion dollar market. The company that can produce these products at the same high quality that the industry is used to and at a lower production cost must be a good candidate. The stock market is probably the greatest discounter of what will happen in the future. By looking at company�s such as Amgen or Biogen at their earliest stages, the stock market gave them huge valuations based on their future prospects, without any revenues or earnings. By looking at pharmaceutical company�s such as Merck, Bristol Myers Squibb or any other major pharmaceutical company, the stock market gives valuations today based on their future pipeline of new drugs coming to market, and their potential market size. As stated earlier the Nutraceutical Market could grow to $21 Billion in 2007. If over the next 6 months, COOX with their patented technology, and the commercialisation of their product, on an annualized basis were to generate just $8.5 Million Dollars in revenue, then applying the Price to Sales (TTM) multiple of 9.06 times, would equate to a market cap of $77 Million Dollars. Thus, when applying the comparative group�s price to sales multiples (for Biotechnology and Drug,s is currently 9.06 times) to COOX we can arrive at a relative valuation of $1.00 per share over the next 6 months.
Conclusion In our opinion, the risk in owning COOX is no greater than owning an out of the money six month call option on Intel, Cisco, or Microsoft. You may lose some of your money or you could make a killing.
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| News Release |
Technology could enable Naturol to deliver high concentrate Taxanes to $1.6 billion cancer chemotherapy drug market.
June 26, 2002, Las Vegas, Nevada � Coronado Explorations Ltd. (The Company) (OTC:BB-COOX) announced today that its wholly owned subsidiary Naturol Inc.�s (www.Naturol.net) development partner, the Prince Edward Island Food Technology Centre (�FTC�) (www.gov.pe.ca/ftc) has successfully recovered high concentrations of Paclitaxel from Canadian Yew using Naturol�s proprietary extraction technology. A provisional patent application has been filed to protect the unique extraction process which Naturol intends to use to produce and further purify Paclitaxel and other Taxane extracts recovered from Yew trees in Eastern Canada. Naturol Inc. is a wholly owned subsidiary of Coronado, and has been granted the exclusive North American license by Naturol U.K. Limited to develop and commercialise all the Naturol�s extraction technologies.
Global sales of Paclitaxel in 2000 were estimated at $1.6 billion. The primary U.S. pharmaceutical containing Paclitaxel is TAXOL made by Bristol Myers Squibb. U.S. based generic manufacturers of Paclitaxel with FDA approval include Ivax, NaPro and Mylan.
Paclitaxel is recognised as one of the most important cancer chemotherapy drugs available. It is also one of the few major drugs that cannot be commercially synthesized and has to be extracted from natural sources. Naturol�s breakthrough technology is likely to beneficially change the economics and methods of extracting Paclitaxel and other Taxanes from Yew trees � the world�s most important source of these bio active compounds.
Paclitaxel presently has US FDA approval for use in treating breast and ovarian cancer, certain types of lung cancer and is a second line treatment for AIDS associated with Karposi Sarcoma. Many oncologists believe that Paclitaxel is also beneficial in treating other cancers not presently on the FDA approved list. Paclitaxel, along with other taxanes is recovered from the bark, needles, wood and roots of taxus plants commonly known as Yew. The Yew trees in Eastern Canada are unique in that they contain two to three times the world average concentration of Paclitaxel and other Taxanes and are an abundant resource and sustainably harvested.
It has been discovered that the Naturol extraction technology may be uniquely suited to the recovery of Paclitaxel, and other important Taxanes from the Canadian Yew. Because the Naturol process does not require the elevated temperatures conventionally used in drying Yew cuttings, (believed to destroy a significant portion of the Taxanes present in the fresh cut Yew needles and branches), enhanced recovery of Paclitaxel is anticipated.
By using the Naturol extraction technology, the FTC has demonstrated the ability to produce extracts with a high concentration of Paclitaxel. The FTC and Naturol technical teams believe that through their ongoing development effort they will be able to increase this Paclitaxel concentration to at least a 30% level. These will be sold to FDA approved companies for further concentration and purification to 99.9% bulk Paclitaxel, then converted to pharmaceutical grade products.
Starting early 2003, Naturol plans to process 10 million pounds per year of freshly harvested Yew from five sites in Eastern Canada and recover Paclitaxel and other Taxanes in commercially acceptable concentrations. During 2003, Naturol projects revenues of as much as $9 million from the recovery of Paclitaxel and other Taxanes from Canadian Yew.
Naturol Inc is dedicated to becoming a global leader in the commercialization of technology for the production of low cost, high quality extracts from natural materials. Naturol�s proprietary technologies offer a more benign and cost effective alternative to current extraction technologies for the production of quality extracts for use in the $2.4 billion dollar U.S. market for plant based pharmaceuticals, nutraceuticals, food additives, flavors and fragrances.
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Investor Insights (II) publishes reports providing information on selected companies that II believes has investment potential. II is not a registered investment advisor or broker-dealer. This report is provided as an information service only, and the statements and opinions in this report should not be construed as an offer or solicitation to buy or sell any security. II accepts no liability for any loss arising from an investor's reliance on or use of this report. An investment in COOX is considered to be highly speculative and should not be considered unless a person can afford a complete loss of investment. II has been hired by a third party consultant, and is contracted to receive seven hundred thousand free trading shares of common stock for the publication and circulation of this report. II intends to sell all or a portion of the of the COOX stock at or about the time of publication of this report. Subsequently II may buy or sell shares of COOX stock in the open! m! arket. This report contains forward-looking statements, which involve risks, and uncertainties that may cause actual results to differ materially from those set forth in the forward-looking statements. For further details concerning these risks and uncertainties, see the SEC filings of COOX including the company's most recent annual and quarterly reports. |