kbad- I agree to use EPS and PE to project future
Post# of 56323
Posted On: 09/01/2014 11:12:04 AM
kbad-
I agree to use EPS and PE to project future PPS, as once the hype of this new industry fades (and we're off the pinks), FITX will be evaluated like other businesses - profits and sales growth determine the value of the company. Our near term growth should be robust/nearly exponential - this will allow for a higher PE ratio based on our profit growth %. Gross Margin will be good - 60% or so, but the net income will be sacrificed through expansions costs - this is OK as long as sales continue to climb strongly and the investment in facilities/buyouts/etc are wise.
I think you may have misinterpreted by comments regarding the competition - I think we will have growing sales figures, but they will too and there will be increased competition in regards to price and various strains from growers globally. My question is how do we emerge as the beast that some forecast us to be? If it is hemp, then there will likely be many, many companies to grow hemp and align themselves with companies that can extract the CBD's, or purchase equipment to do so. It's not like we have a patent on the ability to extract CBD's from hemp and can license the technology to others. The insurance aspect will help, but it will not carry us to be the global icon.
I understand that we have a number of moving parts - they are all pulling in the same direction to develop new revenue streams. This is all a good thing, no doubt about it. I'm just conservative in my views as to all things coming together to make us the global giant some are thinking we'll be.
Regards,
-kbulldog.
I agree to use EPS and PE to project future PPS, as once the hype of this new industry fades (and we're off the pinks), FITX will be evaluated like other businesses - profits and sales growth determine the value of the company. Our near term growth should be robust/nearly exponential - this will allow for a higher PE ratio based on our profit growth %. Gross Margin will be good - 60% or so, but the net income will be sacrificed through expansions costs - this is OK as long as sales continue to climb strongly and the investment in facilities/buyouts/etc are wise.
I think you may have misinterpreted by comments regarding the competition - I think we will have growing sales figures, but they will too and there will be increased competition in regards to price and various strains from growers globally. My question is how do we emerge as the beast that some forecast us to be? If it is hemp, then there will likely be many, many companies to grow hemp and align themselves with companies that can extract the CBD's, or purchase equipment to do so. It's not like we have a patent on the ability to extract CBD's from hemp and can license the technology to others. The insurance aspect will help, but it will not carry us to be the global icon.
I understand that we have a number of moving parts - they are all pulling in the same direction to develop new revenue streams. This is all a good thing, no doubt about it. I'm just conservative in my views as to all things coming together to make us the global giant some are thinking we'll be.
Regards,
-kbulldog.
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