$TPAC Here is a quick speculative calculation on p
Post# of 22940
Boeing Sees 3,000 Advanced Orders for New 737 at low key event:
http://www.hngn.com/articles/158504/20151209/...vent-3.htm
$TPAC 2014 Business Plan; pg 1 states that each aircraft needs 3,000 bearings at a value of $500,000 per aircraft. The infogrpahic on the bottom of pg 10 confirms that 3,000 is the correct number.
Quote from pg 1:
Validation of Business Model
The Company has established a manufacturing facility in the Luogang Scientific and Technology Center
in Guangzhou, China through its subsidiary, Godfrey China, to manufacture aerospace quality selflubricating
and standard spherical bearings, rod ends and bushings (collectively, “Bearings”). Over 3,000
of these parts (approximately $500,000 worth) are used in every aircraft and must be replaced regularly.
Source: http://tpacbearings.com/sites/default/files/t...s-plan.pdf
3,000 bearings * $500,000 = $1,500,000,000 in bearings for all 3,000 of the 737's on advanced order.
Will we land all of these? I highly doubt it. Instead, I'm going to divide the order by seven, seeing as we are only one of seven bearing companies in the world that is NAVAIR certified.
$1,500,000,000/7 = $214,285,714.29 (pennies to the right of the decimal place rounded up from .286 to .29).
This is what I believe to be the higher end of our potential. This does not include COMAC, the other international aerospace parts distributor, automotive, marine, alternative(robotics, heavy machinery, industrial application), nor does it include any other present or future relationships within the aerospace industry.
Our bearings are currently NAVAIR tested and approved at 25,000 rotations; as we are upgraded to 100,000 rotations, as previously discussed some time ago, we will likely acquire that much more business.
The potential here is unreal. And the share structure is shrinking significantly as well.
Here's a quick calculation on share structure. I am basing this off the completion of the 1.8B share retirement plan(900M O/S have been retired with 900M more to go; float at that point is estimated at 900M).
At a pps of .01:
900,000,000 shares * .01 = $9,000,000
That's right; only $9M to lock up the float of a company that may be seeing +$200M in revs just from the 737 pre orders listed above. The $9M is figuring in that everyone is selling at .01, regardless of whether they purchased lower or not. Seeing as that is not going to happen, and we are only gaining more momentum here and attracting more investors(of all kinds), this is small change for what kind of money is out there and willing to invest in the aerospace sector.
2016 is going to be a great year. And to think, 2015 isn't even over yet; more updates coming from company before new years.