Very interesting, I was just doing a few back of t
Post# of 11899
Very interesting, I was just doing a few back of the envelope calculations on RFMK and noticed something interesting.
Current O/S is basically 1 Billion shares.
Current share price is $0.002/share.
The usual P/E multiple for many of these kinds of speculative but potentially high growth micro cap start ups is 30.
This means that the current market cap is about $2M which divided by the P/E multiple is few thousand dollars greater than about $60,000. What is interesting is this amount is about the cost of the 2k units of CannaCigs that are definitely the inventory of product for RFMK (2k units * $30 cost ~=$60,000).
What this means is that the market right now, even though giving the stock an adequate P/E multiple, is not giving the company any faith whatsoever in any value other than the inventory of product they currently have. This is amazing opportunity for investors! This means that the market is only pricing into the valuation the worth of the inventory on hand which is ludicrous in my opinion. It is clear with this analysis that the market has not priced in any other earnings or value into the company other than the immediate inventory on hand, not even the proceeds from sales RFMK can get from this inventory! Simply amazing! The proceeds from profits alone after selling all of the inventory on hand would be $50 * 2k units = $100,000. This would make for a share price of $0.003 using the same logic, and very interestingly, that share price is the 200 day moving average which is likely to be revisited at some point. It is amazing and very illuminating to me that where the MMs are keeping this stock is at levels which suggest zero faith in the company to grow and have any other value than the worth of the inventory on hand and maybe later once sold the profits from the sale proceeds only. Meanwhile, the company has many other layers of value that the market is forgetting about, namely consulting revenues, book value based on trademarks and pending patents, agreements, lines of credit, bionic sales and inventory and any other misc income streams. The current share price gives RFMK absolutely zero credibility and in my opinion represents a considerable opportunity for investors. Interesting how some number crunching can illuminate and expose certain things going on in how the market is giving a company its valuation.
GLTA!
$RFMK!