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Re: cjstocksup post# 84382

Tuesday, 07/29/2014 1:45:38 AM

Tuesday, July 29, 2014 1:45:38 AM

Post# of 123644
Excellent factual numbers on how MRIB could be to be worth $1.00 per share and none of this has the retail numbers or new contracts
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=98712759
2014 share price estimates based on current production capacity ... (will increase as new PR is put out by the company, this is just the beginning !)

Current Production Capacity (Cases): 20,000 cases per month
Current Production Capacity (Containers): 10.5 containers per month (126 containers per year)

Revenue per bottle $17.54
Bottles per case = 6
Price per case = $105.24
1 container = $200,000 revenue
Cases per container = 1900 (minimum order size posted on Alibaba.com)

Production Revenue @ 20,000 cases per month = $2,104,800
Production Revenue @ 240,000 cases per year = $25,257,600

Estimated rationale for current production being set at 10.5 containers per month is due to the current contracts we know about, plus the USA specualation:

30 million / 5 years = 6 million per year
40 million / 5 years = 8 million per year
=========================================
Total 14 million per year @ $200,000 per container = 70 containers, accounting for 7 months of "current" production capacity.

That leaves a remaining 56 containers to be used for initial USA distribution. Due to the likely "ramp-up" period for Brazil/DR increasing the container delivery from the initial 1 container per month, there should be product available for other countries as new contracts are established. At that time, the production will likely increase to meet the contract averages.

At 20% profit margin, the estimated Net Income at current production levels is $5,051,520. (P/E 40 = 0.48 share price)

However, due to their size and business model, I would estimate Marani can operate at a much lower cost than normal industry average.

30% profit margin: $7,577,280 (P/E 40 = 0.72 share price)

40% profit margin: $10,103,040 (P/E 40 = 0.97 share price)

It only gets better from here :)