Thursday, July 21, 2011 10:08:51 AM
SMKY 7/21/2011 DD SUMMARY:
SMOKY MARKET FOODS (SMKY) has gained a lot of new attention recently, due in part to their introduction of a number of their products through a Special Summer Sale at http://www.smokymarketspecials.com. The food is absolutely delicious, so it comes with no surprise that a lot of consumers have now become investors in SMKY.
The timing could not be better to consider an investment in SMKY right now, as several major company events are expected to occur by mid-August:
1. Announcement of Canadian subsidiary being established.
2. Completion of audited financials for FY-2010 and Q1 of 2011, which will allow for major financing to occur for oven expansion and marketing purposes, and will also bring updates to otcmarkets.com with the SEC filings.
3. Launch of new online store in affiliation with Weight Watchers, with focus on SMKY‘s very healthy Atlantic Salmon Fillets (SMKY’s most popular and most profitable product).
It is anticipated that SMKY's existing half-sized oven will likely be at full capacity following the above events, which can produce an estimated $30M in annual revenue, resulting in an estimated EPS in the range of .05 to .08. If a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $1.25 to $2.00 per share!
With existing capacity expected to be reached immediately, an additional full-sized oven is planned, which would be capable of producing an additional $60-70M in annual revenue, and should be up and running near the end of 2011 or beginning of 2012. With this additional oven capacity, SMKY would then be able to produce $90-100M in annual revenue, resulting in an estimated EPS in the range of .13 to .24. Once again, if a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $3.25 to $6.00 per share!
The above share valuations may seem very high for a stock currently trading near .20, but the potential is very real given the millions of consumers that will soon be introduced to Smoky Market Foods through Weight Watchers in both the U.S. and Canada. Additionally, the thin share structure for SMKY has contributed to a rise in share price with no evidence of any major resistance along the way. The float of 13.4M shares consists of 7.8M shares controlled by original seed investors and 5.6M shares held by others, most of which seem to be long-term investors with same dream as the company and its original seed investors.
Because of this very unique situation with the tradable public float, many expect the upcoming news to generate enough new buying volume to continue the rise in share price that has been ongoing since the beginning of the year, and possibly even approach the first stage of share valuation of $1.25 to $2.00 per share.
Long-term Weekly Chart:
SMOKY MARKET FOODS (SMKY) has gained a lot of new attention recently, due in part to their introduction of a number of their products through a Special Summer Sale at http://www.smokymarketspecials.com. The food is absolutely delicious, so it comes with no surprise that a lot of consumers have now become investors in SMKY.
The timing could not be better to consider an investment in SMKY right now, as several major company events are expected to occur by mid-August:
1. Announcement of Canadian subsidiary being established.
2. Completion of audited financials for FY-2010 and Q1 of 2011, which will allow for major financing to occur for oven expansion and marketing purposes, and will also bring updates to otcmarkets.com with the SEC filings.
3. Launch of new online store in affiliation with Weight Watchers, with focus on SMKY‘s very healthy Atlantic Salmon Fillets (SMKY’s most popular and most profitable product).
It is anticipated that SMKY's existing half-sized oven will likely be at full capacity following the above events, which can produce an estimated $30M in annual revenue, resulting in an estimated EPS in the range of .05 to .08. If a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $1.25 to $2.00 per share!
With existing capacity expected to be reached immediately, an additional full-sized oven is planned, which would be capable of producing an additional $60-70M in annual revenue, and should be up and running near the end of 2011 or beginning of 2012. With this additional oven capacity, SMKY would then be able to produce $90-100M in annual revenue, resulting in an estimated EPS in the range of .13 to .24. Once again, if a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $3.25 to $6.00 per share!
The above share valuations may seem very high for a stock currently trading near .20, but the potential is very real given the millions of consumers that will soon be introduced to Smoky Market Foods through Weight Watchers in both the U.S. and Canada. Additionally, the thin share structure for SMKY has contributed to a rise in share price with no evidence of any major resistance along the way. The float of 13.4M shares consists of 7.8M shares controlled by original seed investors and 5.6M shares held by others, most of which seem to be long-term investors with same dream as the company and its original seed investors.
Because of this very unique situation with the tradable public float, many expect the upcoming news to generate enough new buying volume to continue the rise in share price that has been ongoing since the beginning of the year, and possibly even approach the first stage of share valuation of $1.25 to $2.00 per share.
Long-term Weekly Chart:
My posts are my personal opinions and not recommendations to buy or sell securities. You are responsible for your own investment decisions.
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