I'm with you, Jester, and all the longs. I am
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Posted On: 07/31/2018 2:43:50 PM
I'm with you, Jester, and all the longs.
I am once again reminded of Uncles Graham and Buffett:
"In the short run, the market is a voting machine but in the long run it is a weighing machine."
The PPS doesn't mean sh*t most of the time, and this is more true as volatility increases. What really matters is the market cap, not the price per share. And Mike projects (very conservatively, as was just mentioned a few posts ago) a market cap of $250 million in 2023. I personally expect a market cap of at least two to four times that figure (up to $1 billion valuation) by 2023. But, because of all of my investments (not just RMHB), I will be able to 'retire' at about $250 million in RMHB market cap.
A company's real value is what the market measures on the long run weighing machine. In the case of a beverage company (which is only part of RMHB's business, but still one of its long term largest product lines according to the information I have), a loose proxy for how much the company 'weighs' is how many cans/bottles they sell per time period at what price point. According to my analysis, with the assumption that share returns and buy-backs bring the total float back down under 700 million shares, and that the average RMHB can/bottle retails at approximately $2, a beverage company market cap of $250 million would imply (based on existing non-hemp beverage company multiples) sales of 2 million cans/bottles per month or roughly 25 million cans/bottles per year. I believe this is totally doable by 2023 (and to be expected, given the talent and expertise we have in the house). I believe it is even more doable with higher-margin products in a niche space like CBD.
I am once again reminded of Uncles Graham and Buffett:
"In the short run, the market is a voting machine but in the long run it is a weighing machine."
The PPS doesn't mean sh*t most of the time, and this is more true as volatility increases. What really matters is the market cap, not the price per share. And Mike projects (very conservatively, as was just mentioned a few posts ago) a market cap of $250 million in 2023. I personally expect a market cap of at least two to four times that figure (up to $1 billion valuation) by 2023. But, because of all of my investments (not just RMHB), I will be able to 'retire' at about $250 million in RMHB market cap.
A company's real value is what the market measures on the long run weighing machine. In the case of a beverage company (which is only part of RMHB's business, but still one of its long term largest product lines according to the information I have), a loose proxy for how much the company 'weighs' is how many cans/bottles they sell per time period at what price point. According to my analysis, with the assumption that share returns and buy-backs bring the total float back down under 700 million shares, and that the average RMHB can/bottle retails at approximately $2, a beverage company market cap of $250 million would imply (based on existing non-hemp beverage company multiples) sales of 2 million cans/bottles per month or roughly 25 million cans/bottles per year. I believe this is totally doable by 2023 (and to be expected, given the talent and expertise we have in the house). I believe it is even more doable with higher-margin products in a niche space like CBD.
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