Greetings RFMK investors. I thought I would just post a few details about RFMK. Most are probably aware of these facts and figures but sometimes it helps to be reminded and to gain perspective.
http://www.otcmarkets.com/stock/RFMK/company-info
OTC Pink Current Information
RFMK Security Details
Share Structure
Market Value1 $2,128,159 a/o Jan 25, 2013
Shares Outstanding 1,520,113,736 a/o Dec 12, 2012
Float 1,275,028,524 a/o Dec 12, 2012
Authorized Shares 2,000,000,000 a/o Dec 31, 2011
Par Value 0.001
Website: http://www.rapid-fire-marketing.com
Just some of my own musings on the stock metrics. I think it possibly raises a quite interesting investment opportunity for any stock which is trading at only a mere 40% or 50% premium to the par value ($0.001 for RFMK) for it's shares, in this case, $0.0015. I think it is very interesting that the market is valuing RFMK with a market cap of only $2M. With an O/S at 1.5B, $900k worth of units to sell over a year period, major distribution and supply chains in place and ready for marketing to gear up and begin selling the product on a large scale, the possible EPS for year end could be $0.0006, tack on a P/E market multiple of 50 and the fair share price valuation comes to about $0.03!!! At the current low market cap, it is unclear if the market is assuming the EPS will be much much lower or the market multiple will be much much lower or both will be lower. If EPS is to be much lower then it would mean the company could not sell 9,000 units in 12 months. If the multiple is to be much lower then it would mean the company's long term revenue growth rate is to be much lower than 50%. Looking at the first scenario, to sell 9,000 units in 12 months, means selling 750 units per month, 188 units per week or about 25 units per day. Between theCannaCig.com site, GotVape, multiple retail store locations and other online affiliates, about 5 units would need to sold by each outlet per day. If this seems unattainable to you then perhaps you think the $0.03 share price target is too high and there is some more likely price target that is lower. As for the market multiple, the company brought in revenue of only $26,000 or thereabouts last year and last year was mostly developing and launching the product, not pulling in tons of revenues from sales, because as we all know (hopefully), it takes time to develop a supply chain and have mass marketing begin to drive sales traffic. Sales revenue on a massive scale does not just happen, merely because a company has a large inventory of product to sell. Marketing drives sales so a company must first begin massive marketing campaigns in order to drive sales. For the company to pull in 50% more revenues in 2013 versus 2012, the revenues would need to be a mere $39,000; that corresponds to only 390 units getting sold (not counting costs and expenses), or lets say 1,000 units to include costs and expenses. Each day, 2 units in total, among all the retail locations and online affiliates would need to be sold. If this seems like more units than what you think will or can be sold then perhaps a market P/E multiple of 50 is too high for your estimations of where the stock can go in the future.
However one looks at future earnings potential is their own perspective and musings on how things could turn out for RFMK and the stock, but it seems clear that just looking at the raw numbers, RFMK could actually have a chance to turn a profit in 2013 and that alone is more than I can say about most of the pink sheets stocks on the market right now. Based on the current PPS, which is five ticks away from par value, $0.001, and the current O/S, even assuming a rather small P/E multiple of 10, the market would seem to be suggesting that the company only has the chance to make $200,000 over the year. If we assume double that in revenues and $100 per unit sales, then about 4,000 units would need to be sold, assuming this rather low P/E multiple, in which case, about 10 units would need to be sold per day, or about 1 unit per day from each outlet. Of course these are all just guesstimations and wild speculation but as investors we must look into the future and make predictions. We all know where this RFMK "story" has been, where it has come from and where it is now, but no one can possibly know exactly how RFMK's future will unfold. It is rather convenient to negatively attack only those start up company "stories" which have had a tough time developing their product and getting it to market and still have not succeeded in getting to the promised land of profitability. It is difficult to see potential in those "stories" which have a chance to succeed yet still have not actually done so. However, such stories are actually where the big money is made in investing, there is no way around it. It is easy to invest in established large cap companies wherein the future is rather well known, but also not much money is made in those "stories" because there is not much of a story, the story is already known. The story for new start up companies in the public market are not well known and so there is the potential for investors to make a lot of money, and also to lose a lot of money; the failure and success rates of the various start ups are rather volatile. What is certain is that if one chooses to only verbally attack and denounce those start ups with a rough past and which still have not become profitable and saying nothing if and when they finally succeed, those naysayers get to enjoy feeling right 100% of the time.
Difficult to see the future is.
GLTA
$RFMK