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Re: Whi939 post# 8799

Wednesday, 11/05/2014 6:10:37 PM

Wednesday, November 05, 2014 6:10:37 PM

Post# of 98530
Price in 6 months?
I don't know about 6 month but I'll take a shot at a year.
First, their current plan is to get to 24 million cans production capacity and 50,000 stores in one year. One Minute Omelet is still to new to factor in yet.
Current share structure: 67.2 Million common with another 16 million common authorized as employee incentive program. Nate and WB have preferred shares that can be converted to 50 million common, each, after 1 year. Lets' assume WB converts and Nate hangs on for a buyout.
They're speculating $74 million in revenue. That would imply $3 per can. I know they were charging $5 a can at Costco but we'll use $3 per can.
Assuming a 7% profit margin, we have $74 million X .07= $5.18 million profit. Divide that by 133.2 million common shares and we get a profit of .0388 cents per share. Multiply that by a PE of 25 and we have 97 cents per share in 1 year.
Personally, I think all profits will go towards expansion of the company, assuming people go nuts for Nate"s products. Also, price could be much higher if this turns into a story stock with a higher PE.
Of course, price could be much lower if their sales projection proves optimistic.

They are hoping to get One Minute Omlete to $175million in sales, which would throw these projections out the window.
http://finance.yahoo.com/news/nate-food-co-announces-begun-130000098.html

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