MUST READ Could See.021-.084 price!! $TPAC In
Post# of 22940
Industry - $1.6B - Annual sales of SAE-AS spherical bearings for commercial aircraft
Let's assume $TPAC can secure 1% of this market - $16M in earnings for TPAC
Margins -- Gross Profit Margin of approximately 70% on average
$11.2M in Margins for $TPAC -- This is Gross Profit of .0056 per share (at current OS)
Earnings & EPS
let's assume that $TPAC spends 50% of the $11.2M on operations... leaving $5.6M in earnings...
This gives us EPS (earnings per share) of .0028
P/E (Price to Earnings Ratio) to calculate the PPS...
Typical industry public companies (with much less growth potential) trade at 15-20 times earnings (P/E = 15-20)...
- let's assume $TPAC only trades at 10x earnings (P/E=10)
Share Price --->
with PE only 10 & EPS of .0028, $TPAC would trade at $.028
this is with conservative estimate of 1% of industry market share & PE of only 10.
1% market share --- share price = $.028 (PE=10)
2% market share --- share price = $.056 (PE=10)
3% market share --- share price = $.084 (PE=10)
4% market share --- share price = $.112 (PE=10)
Risk vs Reward
Keep in minde, OTC/Pinks are speculative & have much higher growth potential.
For this reason, OTC/Pinks can trade at upwards of 100x forward earnings...
Considering this, let's look at $TPAC share price (at current share structure) with a P/E ratio of 20 and 30 (still conservitive for OTC)
1% market share --- share price = $.056 (PE=20)
2% market share --- share price = $.112 (PE=20)
3% market share --- share price = $.168 (PE=20)
4% market share --- share price = $.224 (PE=20)
1% market share --- share price = $.084 (PE=30)
2% market share --- share price = $.168 (PE=30)
3% market share --- share price = $.252 (PE=30)
4% market share --- share price = $.336 (PE=30)
At only 1/4 of a single % of the market share, $TPAC could still easily be valued at a firm $0.021 per share..
PS... this doesn't take into account further share reductions that would likely take place from a % of earnings!!!!
$TPAC -- golden opportunity imo
@doebop
Reference: http://www.tpacbearings.com/sites/default/fil...tion_0.pdf
imo