Newbies and Oldies take a real good look at this.
Post# of 43064
Quote:
Newbies and Oldies take a real good look at this.
JBI: A Conservative P2O Valuation Approach
This is an attempt to break the business model on the first 5 processors, and see what the results are.
Assumptions:
O/S: 53,000,000 (Roughly 1.5 million more than current)
Oil: $60/barrel (Bear market/Deflation)
Production:32,000 barrels (20% downtime)
Cost: $15/barrel(claim is under $10)
WTI (Should get WTI+$2, blending site should increase margins)
Taxes:40% (No tax incentives or credits)
PE:100 (Should be very achievable with easily replicated machine and media attention to cheap production, waste to fuel)
EPS/processor: 0.0163
1 Processor $1.63
2 Processors $3.26
3 Processors $4.89
4 Processors $6.52
5 Processors $8.15
Still very good numbers. What are the odds that every variable will come under claims or expectations?
To give an idea of the difference between $60 oil and the price of oil today at roughly $76/barrel, 2 processors would equal $4.41.