SYCR Value based on Warrent, Reg S., and sales.
1) Per Eric Miller(PR), $18.50 for SYCR per sale is an accurate guess. They can not disclose the details of the agreement, but I was lead to believe this was close.
2) Per post #1436, 943,636 shares can be bought at $5.50 (I will use 1 mil) and 1,496,168 can be bought at $5.20 (I will use 1.5 mil). These warrents will place $13 Mill cash in SYCR's hands. For purpose of calculations I have added this amount / total shares to the final value of the stock. I have rounded numbers for ease of calculations.
Assuming:
Value = (EPS * 30) + (if price > warrent price ($13mil/total shares))
Value = (Earnings/(shares outstanding + Reg S conversions + Warrant conversions) * 30) + ($13 Mil/(shares outstanding + Reg S conversions + Warrant conversions))
Reg S conversions = $8 mil/least of (5 day average Share price or $3.50.)
Earnings = $3.885 Mil (See below).
Shares outstanding = 16 Mil.
If price = $.5, Value = $3.63
If Price = $1, value = $4.86
If Price = $2, value = $5.83
If Price = $3, value = $6.24
If Price = $4, value = $6.37
If Price = $5, value = $6.37
Warrants added here
If Price = $6, value = $5.61 +$.63 = $6.24
If Price = $7, value = $5.61 +$.63 = $6.24
These calculations indicate the price settling arount $6 (value = price). All calculations hold earning at $3.885 mil. As earnings estimates change, the value can be quickly adjusted by the following equation:
(New earnings estimate/$3.885 mil) * above values.
I am holding the SYCR that I have in case it jumps now. I will buy more if the price drops in Mid March. If it goes up, I make money. If it goes down, I buy cheep and then make money. Is this a great country or what?
Earnings based on SYCR getting $18.50 per unit.
500,000 units of Windrenelin (NO OTHER PRODUCTS)
500,000 x $18.50 = $9,250,000
9,250,000 x 70% profit margin (they were doing 85%) = $6,475,000
$6,475,000 x 60% After-Tax Net Profit Margin (they did 75% before) = $3,885,000 Earnings
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