PEG thanks for your analysis and opinion... I h
Post# of 56323
Posted On: 04/27/2014 2:41:53 PM
PEG thanks for your analysis and opinion...
I have and continue to do my own DD. I totally agree with your analysis of FITX, except I think that once FITX starts selling MMJ your PE is way conservative in this budding sector (pun intended). If we were making something like a new washing machine or world's best alarm clock it would be a fair PE. But with the NEW ERA of legalized medicine (MMJ).... it will end up with a much higher PE for the first 2-5 years **.... and my instinct is your profit margin estimate is slightly LOW as well. Need to try and predict the MJ hype. I would venture to estimate the MMJ sector PE as a whole will develop in the range of 40-60 times earnings.
Thus, my opinion....1.3 million pounds of MMJ potential. If FITX produces just 100,000 pounds of MJ in it's first full year....less than 1/10 (one tenth) of the 1.3 million pounds.....at a sales price of just $2,500 per pound...the total revenue will be $250,000,000 (two hundred and fifty million dollars)....at a 60-70% profit margin, that will be a profit of $150,000,000 to $200,000,000 (one hundred and fifty million dollars to two hundred million dollars).
But assuming the 60% holds true as we ramp up, FITX total authorized share count of 3,500,000,000.....the earnings ($150,000,000 divided by 3,500,000,000) per share would be $0.043 (four point three cents) per share. Then, with a modest P/E (price / earnings) ratio of:
PE PPS
25 $1.07 (25 P/E times $0.043 earnings per share).
30 $1.29 (30 P/E times $0.043 earnings per share).
35 $1.50 (35 P/E times $0.043 earnings per share).
40 $1.72 (40 P/E times $0.043 earnings per share).
45 $1.93 (45 P/E times $0.043 earnings per share).
50 $2.15 (50 P/E times $0.043 earnings per share).
55 $2.36 (55 P/E times $0.043 earnings per share).
60 $2.58 (60 P/E times $0.043 earnings per share).
AND FOLKS that is at 10% of the proposed production, without a share repurchase, without adding in HEMP Tech or the supplemental products....
As always, please do your own DD.
I have and continue to do my own DD. I totally agree with your analysis of FITX, except I think that once FITX starts selling MMJ your PE is way conservative in this budding sector (pun intended). If we were making something like a new washing machine or world's best alarm clock it would be a fair PE. But with the NEW ERA of legalized medicine (MMJ).... it will end up with a much higher PE for the first 2-5 years **.... and my instinct is your profit margin estimate is slightly LOW as well. Need to try and predict the MJ hype. I would venture to estimate the MMJ sector PE as a whole will develop in the range of 40-60 times earnings.
Thus, my opinion....1.3 million pounds of MMJ potential. If FITX produces just 100,000 pounds of MJ in it's first full year....less than 1/10 (one tenth) of the 1.3 million pounds.....at a sales price of just $2,500 per pound...the total revenue will be $250,000,000 (two hundred and fifty million dollars)....at a 60-70% profit margin, that will be a profit of $150,000,000 to $200,000,000 (one hundred and fifty million dollars to two hundred million dollars).
But assuming the 60% holds true as we ramp up, FITX total authorized share count of 3,500,000,000.....the earnings ($150,000,000 divided by 3,500,000,000) per share would be $0.043 (four point three cents) per share. Then, with a modest P/E (price / earnings) ratio of:
PE PPS
25 $1.07 (25 P/E times $0.043 earnings per share).
30 $1.29 (30 P/E times $0.043 earnings per share).
35 $1.50 (35 P/E times $0.043 earnings per share).
40 $1.72 (40 P/E times $0.043 earnings per share).
45 $1.93 (45 P/E times $0.043 earnings per share).
50 $2.15 (50 P/E times $0.043 earnings per share).
55 $2.36 (55 P/E times $0.043 earnings per share).
60 $2.58 (60 P/E times $0.043 earnings per share).
AND FOLKS that is at 10% of the proposed production, without a share repurchase, without adding in HEMP Tech or the supplemental products....
As always, please do your own DD.
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