Dish - Fun with Numbers volume 75: "Multi-Billi
Post# of 41413
"Multi-Billion dollar company" LT - remember that comment? Sticks with me...
With the shares outstanding reduces to 400 million on 25/1. A dollar a share makes this a 400 million dollar company. Now - 10 dollars a share gets this to 4 Billion dollar company... Which is in the target of what you would be looking for a week ago in your question.
Of course - 50/1 doubles everything... EVERYTHING!!!
What makes this even cooler is that for every penny they earn Annually, they are intrinsically earning 35ish based on PE multiples.
With the huge reduction in shares, ANY dollar amount is now measured against the lower O/S jacking up the math all the way through.
So say they make 100 Million dollars PROFIT in year one! (So tough to gauge without Pro Forma - but lets use it for fun). That means they earned .25 cents a share. That puts your future value at approximately 8.75 per share target value - which we know is in that "MULTI Billion" range -
DO I see this a possible? I not only see it possible, but trading 10/share post split by end of year - I actually see as probable... Because - real institutional analysts will look at the numbers the way I do and set that target price out there... Make this stock a Blazing BUY recommendation and buy undervalued shares below that one year price...
What I have not done for you here is roll out a 5-10 income expectation plan to five you a 5 year price projection... but If I told you my assumptions... This would be legitimated scary discussion. Keep in Mind Jet Blue has what 400m shares O/S as well and no where near the marketing possibilities here - its a flawed company. This literately has the worst to first capability....