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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion.

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To: dreamer who wrote (84496)5/21/2001 8:14:13 AM
From: Joe Copia  Read Replies (1) of 150070
 
By: TRADE_4_MONEY $$$$
Reply To: 3187 by MR.CASHH $$ Monday, 21 May 2001 at 12:54 AM EDT
Post # of 3233


Future Valuations of SSPC

The current biodiesel price is around $1.25 - $2.25 per gallon. The first plant SSPC built has the capacity to produce 10 million gallons, this plant could generate revenue around $12.3 - 22.5 million. As the CEO said, this is just one of many plants they wanted to build. if they buid 5 more plants, the revenue will be around $100 million. Since the cost of materials (soybeans) and ongoing operations are very minimal, I would say the profit margin could be around 30%.

This company has an OS of 30 million shares, if the revenue is $100 million, with a profit margin of 30%, the EBTI should be around $30 million. Guess what, it would put the company with a P/E ratio of $1. With the oil/gas companies'average P/E ratio of 20, if the O/S maintains at 30 million shares, this stock should be traded at $20 in the near future if they could build 5 plants and with a profit margin similar to other oil/gas companies.

I will put out a more detailed analysis of its future valuations on Monday.

Good luck to all.
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