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AZFL...Simple math. They said they expect the 1st

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trader guy   Thursday, 07/20/17 08:19:17 PM
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AZFL...Simple math. They said they expect the 1st 100 acre field to yield 2000 gallons of high CBD hemp oil. Logically the 2nd 100 acres will yield another 2000 gallons-4000 total gallons of high CBD hemp oil. https://www.otcmarkets.com/stock/AZFL/news CBD oil in most instances sells in kilograms, grams and milligrams.

First we have to know the weight of the 4000 gallons of oil. All oils weigh between 7 and 7.5 pounds per gallon, which gives us about 28000 pounds of high CBD hemp oil. One gallon of oil is equal to about .45 kg, and .45 x 28000 equals 12600 kilograms of CBD oil, or 12.6 billion milligrams, since there are 1 million milligrams in 1 kg.

Ok, so the lowest price for wholesale high CBD hemp oil is around $.025 per mg and retail around $.07 per mg. If the 4000 gallons is sold wholesale it would net around $315M, and retail around $882M in revenues.

I can't help but go further with this, it is my nature.

Ok, so my research has indicated that the cannabis business yields between 25% and 30% profit margins. I'll use the lowest number, which means .25 of $315M gives $78M profit or .25 of $882M gives $220M. Divide the numbers by the highest maximum O/S at this time of 3B and you get .026 EPS and .0733 EPS. Take those numbers times the average S&P earnings multiple of 25 and you get $.65 PPS and $1.8325 PPS.

It could all be better or it could be worse. Since all my numbers are fairly conservative, better would be my bet. Unless of course they pull a fast one and increase the A/S.


Trading or investing without chart analysis is like going to a gunfight armed only with a knife.
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