Iconic Brands Inc (ICNB)

[stervc]

Revised ICNB .19 Fundamental Valuation

Previously within the link below, I had posted that the recent ICNB acquisition of the Bellissima Prosecco made ICNB worth .06+ to .19+ per share through ”logical” deduction:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=127434675

The valuation was derived through the consideration of some key variables to where the capacity amount of cases sold per month was unknown. Within the PR recently released by ICNB below, the company confirmed a max capacity of cases sold per month to be 30,000 cases:

http://www.marketwired.com/press-release/iconic-brands-icnb-bellissima-prosecco-news-2186212.htm
The company is positioned with current monthly allocated capacity of 30,000 cases which can be increased based on demand…

What this now means is that the below valuation will lean more towards being an ”actual valuation” versus just being a ”speculative valuation” for ICNB. This means that since they have been selling out of thousands of cases of Bellissima Prosecco per month, it’s fair to presume that they will either meet or exceed their level of consistency of 30,000 cases per month.

I have seen a few different retail prices for the Bellissima Prosecco, but the majority of prices I have seen throughout have been for $19.99 per bottle. From the video/links below with Christie Brinkley and the NYSE President (Tom Farley), each bottle of Bellissima Prosecco costs $19.99 per bottle:
http://video.cnbc.com/gallery/?video=3000572759
https://www.finewineonline.com/wines/Bellissima-Sparkling-Zero-Sugar-w96757622t
https://www.finewineonline.com/wines/Bellissima-Sparkling-Rose-w7671227ru

I will derive a valuation based on a minimum of 30,000 cases sold per month of the Bellissima Prosecco although the company mentioned that they have capacity to expand this production amount.

Now let’s update these key variables now that we have a little more finite info to justify a fundamental valuation for ICNB:

Key Variables to Note
** $19.99 Per Bottle
** 6 Bottles Per Case
** 30,000 Cases Sold Per Month
** Outstanding Shares (OS) = 814,790,609 shares
** Net Profit Margin for the Beverages - Wineries & Distillers Industry is 18.60% (.1860) As of 6-Jan-2017
https://biz.yahoo.com/p/347conameu.html
** Price to Earnings (P/E) Ratio for the Beverages - Wineries & Distillers Industry is 19.40 As of 6-Jan-2017
https://biz.yahoo.com/p/347conameu.html

I must reiterate… this now means that the below valuation will lean more towards being an ”actual valuation” versus just being a ”speculative valuation” for ICNB.

For inquiring minds, if 18.60% equals the Net Profit Margin, then this means that 100% minus 18.60% equals the Net Expense Margin which equates to 81.40% as the Net Expense Margin.
(100% – 18.60% = 81.40%)

What this means is that any kind of expenses or fees that anyone chooses to come up with, for the purpose of this post, will be considered calculated and inclusive to be accounted for as part of the Net Expense Margin.

Let’s derive...

30,000 Cases Per Month x 6 Bottle Per Case = 180,000 Bottles

180,000 Bottles Per Month x $19.99 Per Bottle = $3,598,200 Revenues Per Month

$ 3,598,200 Revenues Per Month x 12 Months = $43,178,400 Revenues Per Year

$43,178,400 Revenues Per Year x .1860 Net Profit Margin = $8,031,182 Net Income

Formula to use to derive the Earnings Per Share (EPS)…

Net Income ÷ Outstanding Shares (OS) = EPS
$8,031,182 Net Income ÷ 814,790,609 shares = .0098 EPS

Formula to use to derive the ICNB Share Price Valuation…

EPS x P/E Ratio = ICNB Share Price Valuation

.0098 EPS x 19.40 P/E Ratio = .19 ICNB Share Price Valuation

This means that it is fair to presume that ICNB should be fundamentally trading in the .19 per share range based on the recent acquisition of Bellissima Prosecco and since the company has confirmed a capacity of 30,000 cases per month. As more news is released by the company to confirm even greater growth that is upon the horizon, I believe the market will begin to see this and more.

Stay tuned… it’s coming!

v/r
Sterling