Posted On: 10/13/2014 9:19:36 PM
Post# of 56324
I don't post a lot; however, I wanted to take a stab at the valuation of FITX if license is granted with a very small grow the 1st year...
Let's say that they grow only 20,000 lbs next year.. (License application is for 1.3MM lbs.)
20000 * $4 per gram * 454 = $36,320,000 in profit... (I've taken a low profit % based on taxes, operations, partner, etc...)
36320000 / 3500000000 = .0104 / share earnings....
.0104 * 25 PE (very conservative) = .26 share price!!!
This assumes only 20,000 lbs of product produced, $4 per gram profit, and a 25 PE ratio.. These are so very conservative numbers... Their license is for 1.3 million lbs.. If this were to happen, I can't put enough 0's in the stock price..
To me, all that needs to happen is the license... That will create the opportunity to generate lbs, revenue, profit, and dramatically increased share price..
I don't even include the small revenues from the other businesses....
Let's say that they grow only 20,000 lbs next year.. (License application is for 1.3MM lbs.)
20000 * $4 per gram * 454 = $36,320,000 in profit... (I've taken a low profit % based on taxes, operations, partner, etc...)
36320000 / 3500000000 = .0104 / share earnings....
.0104 * 25 PE (very conservative) = .26 share price!!!
This assumes only 20,000 lbs of product produced, $4 per gram profit, and a 25 PE ratio.. These are so very conservative numbers... Their license is for 1.3 million lbs.. If this were to happen, I can't put enough 0's in the stock price..
To me, all that needs to happen is the license... That will create the opportunity to generate lbs, revenue, profit, and dramatically increased share price..
I don't even include the small revenues from the other businesses....
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