FITX = $7.56! At least. privateequityguru •
Post# of 56324
Posted On: 05/07/2014 9:17:22 AM
FITX = $7.56! At least.
privateequityguru • 1 hour 20 minutes ago Flag
FITX - Stock Valuation - In Relation to Yesterday's New York Post Article
My previous stock valuation models posted here on Yahoo (look them up) were at 5% and 10% of the 1.3 million pound capacity...that the CEO (Bill) reconfirmed in the New York Post article yesterday. Let's look again at calculated stock price valuation models:
If FITX produces just 100,000 pounds of MJ in it's first full year....less than 10% of the 1.3 million pounds.....at a sales price of just $2,500 per pound...the total revenue will be $250,000,000....at a 60% profit margin, that will be a profit of $150,000,000. With an 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 35 for a high growth company....the calculated/justified stock price would be $1.51 (35 P/E times $0.043 earnings per share).
Now.....the $1.51 per share in this model is based on less than 10% FITX MJ capacity stated in the New York Post article yesterday. Look what happens at just under 10%, 20%, and 39% of capacity using the same model:
- Just under 10% of Capacity (100,000 pounds) = $1.51
- Just under 20% of Capacity (250,000 pounds) = $3.78
- Just under 39% of Capacity (500,000 pounds) = $7.56
And, yesterday, FITX Stock price closed at $0.0872. Imagine the stock price as MJ output/distribution increases....globally.
I believe this is why the strong additons to the Board of Directors over the past two weeks. My analysis, model, and opinion....do your own and decide for yourselves Less
Sentiment: Strong Buy
privateequityguru • 1 hour 20 minutes ago Flag
FITX - Stock Valuation - In Relation to Yesterday's New York Post Article
My previous stock valuation models posted here on Yahoo (look them up) were at 5% and 10% of the 1.3 million pound capacity...that the CEO (Bill) reconfirmed in the New York Post article yesterday. Let's look again at calculated stock price valuation models:
If FITX produces just 100,000 pounds of MJ in it's first full year....less than 10% of the 1.3 million pounds.....at a sales price of just $2,500 per pound...the total revenue will be $250,000,000....at a 60% profit margin, that will be a profit of $150,000,000. With an 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 35 for a high growth company....the calculated/justified stock price would be $1.51 (35 P/E times $0.043 earnings per share).
Now.....the $1.51 per share in this model is based on less than 10% FITX MJ capacity stated in the New York Post article yesterday. Look what happens at just under 10%, 20%, and 39% of capacity using the same model:
- Just under 10% of Capacity (100,000 pounds) = $1.51
- Just under 20% of Capacity (250,000 pounds) = $3.78
- Just under 39% of Capacity (500,000 pounds) = $7.56
And, yesterday, FITX Stock price closed at $0.0872. Imagine the stock price as MJ output/distribution increases....globally.
I believe this is why the strong additons to the Board of Directors over the past two weeks. My analysis, model, and opinion....do your own and decide for yourselves Less
Sentiment: Strong Buy
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