Rationale for .05 to .10 target:
[lifted from 10 May RB post by Chopper255]
Ok here is the scoop on the float and some other good tidbits that I have learned by talking to the people at Plasticon today. There is 2 bill authorized shares, 1.4 billion float. 73% of that is Insider Owned (restricted). So how may shares could Jim Turek retire? The market cap @ .003 is about half times earnings which makes this stock way under value. The company is not funding operations by the selling of shares to raise capital! There is no Carry forward Debt. Companies always have carry forward losses (which is a good tax write off), but I was told this would be minimal.
The new distribution partner Blue Linx has 64 locations and sells between $300-400,000 per turn of the inventory product line from Plasticon. Now the majority of the centers are turning the product 4-7 times a year. The company stated that they had for example one center in Florida that had turned the entire inventory in 5 weeks. Hmmmm, now lets see what we get by doing a little OLD school math. And this is IMO only! If we have 64 centers turning the low end of dollars or $300,000 per turn and we say they only turn the product 4 times a year (again the low end of the spectrum) we get 64 X $300,000 X 4 turns or 76.8 million in revenue. Plastic products traditionally have a nice profit margin of about 26% for raw virgin plastics and about 34% for recycled plastics. So lets use the bottom end again 76.8 mil X 26% = $19,968,000 Profit for the year at Current shipping levels here in the US. Oh and I forgot the International Markets which I have no clue until their one year reporting is complete and Finished (THIS Month to move to the OTC Immediately). But lets just say Half of the total revenue for the US distribution or $38,400,000 X 26% again = 9,984,000 or a grand total of $29,952,000 for profit this year on the LOW end of the Scale. Now do you really think this company needs to have a RS? I think not! And what is this puppy really worth? IMO (.10) Right this very minute, and if the sales beat the projections; Look Out it's going WAY higher than that! Now can we go to the Big boards after that? You bet in ONE year after they make it to the OTC to meet the listing requirements by then the sales will have doubled (again at the low end of the scale)and this stock will see prices in the $5-$10 range in as little as 18 months. Once again in my opinion. Do your own DD and figure out if it's the buy of a life time.
Chow and GLTA
************end of text***********
A pretty fair assessment, I think.
Gordon |
