DRNK Valuation to Consider (repost of excellent DD
Post# of 525
Posted On: 11/27/2016 1:51:02 PM
DRNK Valuation to Consider (repost of excellent DD post by Stervc from Ihub):
Initially, I saw DRNK as a ”Lotto Play” because of the lack of substance that I had believed at such time was lacking. Now, I am starting to lean towards believing that the management of DRNK truly have some plans for moving forward that will be in the best interest of us shareholders of DRNK.
Within the recent filings, DRNK has released to have Net Income of $3,634,964 for the last Nine Months Ended as of Sep 30, 2016:
Quote:
http://www.otcmarkets.com/financialReportView...;id=162893
$3,634,964 ÷ 9 months = $403,884 Per Month of Net Income
$403,884 x 12 months = $4,846,608 Per Year of Net Income
So now the question is: Do you believe that DRNK will continue to achieve generating $403,884 Per Month of Net Income which will equate to $4,846,608 Per Year of Net Income?
For me, my answer is… Yes… I do believe that through the known and unknown acquisitions that DRNK has mentioned to be on the table, the company is planning on minimally achieving at least $4,846,608 Per Year of Net Income.
Now we can ”potentially” determine the Fundamental Valuation for DRNK based on $4,846,608 Per Year of Net Income being achieved and if the Outstanding Shares (OS) could remain as they have stated to be 3,655,216,110 shares since the company stated that their acquisitions will be achieved by using the newly issued preferred shares and there will be no dilution to the existing common shareholders.
We determine the potential Fundamental Valuation for DRNK by first determining what the new Earnings Per Share (EPS) would be from such achievements as indicated below:
$4,846,608 Annual Net Income ÷ 3,655,216,110 shares (OS) = .0013 EPS
To determine where DRNK should logically trade, based on the achievements indicated above, we must multiply the .0013 EPS by a Price to Earnings (P/E) Ratio. To better understand the logic and significance of the P/E Ratio, read the links below:
http://www.investopedia.com/terms/p/price-earningsratio.asp
To determine where DRNK should fundamentally trade from the above achievements, I will use a 20 P/E Ratio since they are entering into the Marijuana Industry. See below:
.0013 EPS x 20 EPS = .026 Per Share Valuation
Keep in mind, there is a chance that the valuation could be substantially higher considering that the company has stated this below which strongly hints that something major is going to be placed into DRNK…
Quote:
http://www.otcmarkets.com/stock/DRNK/news
"As a result of these meetings, the Company's Board of Directors has agreed to form a major division that will focus on the development of specialized advertising platforms designed for the Cannabis industry. Further, we will expand our offerings of industry products, financial tools and services, including software. Such highly focused targeting within the Cannabis sector will speed up our acquisition efforts. We are currently in talks with companies situated in California, Colorado and Oregon."
Some key notes to know is that retiring 54 billion shares and then retiring an additional 2.5 billion shares is something significant which leads me to think that the company just might have some serious plans that includes being considerate about their shareholders too:
http://www.otcmarkets.com/stock/DRNK/news
They could have easily smashed their shareholders by doing a reverse split with a huge ratio, but instead they didn't do neither of such. Also instead, they retired a bunch of shares while also eliminating debt and liabilities:
Quote:
http://www.otcmarkets.com/stock/DRNK/news/Med...87&b=y
…Of additional importance is that notes payable of approximately $608,000.00 have been assigned to the buyer and are no longer obligations of NOHO, Inc. …
… On October 5, 2016, NOHO, Inc. settled all (3) of its convertible notes (“Notes”) held by KBM Worldwide, Inc. (“KBM”) and Vis Vires Group, Inc. (“VVG”) for $100,000.00. These Notes will cancel in its entirety and as a result KBM and VVG do not own any stock of NOHO.
Initially, I saw DRNK as a ”Lotto Play” because of the lack of substance that I had believed at such time was lacking. Now, I am starting to lean towards believing that the management of DRNK truly have some plans for moving forward that will be in the best interest of us shareholders of DRNK.
Within the recent filings, DRNK has released to have Net Income of $3,634,964 for the last Nine Months Ended as of Sep 30, 2016:
Quote:
http://www.otcmarkets.com/financialReportView...;id=162893
$3,634,964 ÷ 9 months = $403,884 Per Month of Net Income
$403,884 x 12 months = $4,846,608 Per Year of Net Income
So now the question is: Do you believe that DRNK will continue to achieve generating $403,884 Per Month of Net Income which will equate to $4,846,608 Per Year of Net Income?
For me, my answer is… Yes… I do believe that through the known and unknown acquisitions that DRNK has mentioned to be on the table, the company is planning on minimally achieving at least $4,846,608 Per Year of Net Income.
Now we can ”potentially” determine the Fundamental Valuation for DRNK based on $4,846,608 Per Year of Net Income being achieved and if the Outstanding Shares (OS) could remain as they have stated to be 3,655,216,110 shares since the company stated that their acquisitions will be achieved by using the newly issued preferred shares and there will be no dilution to the existing common shareholders.
We determine the potential Fundamental Valuation for DRNK by first determining what the new Earnings Per Share (EPS) would be from such achievements as indicated below:
$4,846,608 Annual Net Income ÷ 3,655,216,110 shares (OS) = .0013 EPS
To determine where DRNK should logically trade, based on the achievements indicated above, we must multiply the .0013 EPS by a Price to Earnings (P/E) Ratio. To better understand the logic and significance of the P/E Ratio, read the links below:
http://www.investopedia.com/terms/p/price-earningsratio.asp
To determine where DRNK should fundamentally trade from the above achievements, I will use a 20 P/E Ratio since they are entering into the Marijuana Industry. See below:
.0013 EPS x 20 EPS = .026 Per Share Valuation
Keep in mind, there is a chance that the valuation could be substantially higher considering that the company has stated this below which strongly hints that something major is going to be placed into DRNK…
Quote:
http://www.otcmarkets.com/stock/DRNK/news
"As a result of these meetings, the Company's Board of Directors has agreed to form a major division that will focus on the development of specialized advertising platforms designed for the Cannabis industry. Further, we will expand our offerings of industry products, financial tools and services, including software. Such highly focused targeting within the Cannabis sector will speed up our acquisition efforts. We are currently in talks with companies situated in California, Colorado and Oregon."
Some key notes to know is that retiring 54 billion shares and then retiring an additional 2.5 billion shares is something significant which leads me to think that the company just might have some serious plans that includes being considerate about their shareholders too:
http://www.otcmarkets.com/stock/DRNK/news
They could have easily smashed their shareholders by doing a reverse split with a huge ratio, but instead they didn't do neither of such. Also instead, they retired a bunch of shares while also eliminating debt and liabilities:
Quote:
http://www.otcmarkets.com/stock/DRNK/news/Med...87&b=y
…Of additional importance is that notes payable of approximately $608,000.00 have been assigned to the buyer and are no longer obligations of NOHO, Inc. …
… On October 5, 2016, NOHO, Inc. settled all (3) of its convertible notes (“Notes”) held by KBM Worldwide, Inc. (“KBM”) and Vis Vires Group, Inc. (“VVG”) for $100,000.00. These Notes will cancel in its entirety and as a result KBM and VVG do not own any stock of NOHO.
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(0)NoHo, Inc. (DRNK) Stock Research Links
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