Marani Brands Inc. (MRIB)

[luxaeterna]

Why $1.05 seems possible for 2014 - (revealed at the bottom)

1 container per month = $200,000 estimated revenue (per CEO PR statement - see below)

"Marani also anticipates that its spirit will be sent out to distribution centers internationally before the end of Q1. The company expects to bring in $200,000 in revenue per shipping container distributed. With a minimum of 3 containers sent out to be distributed per month, it is expected that initial monthly revenue will total at least $600,000 with potential for more."

Current Contract Estimates:
Brazil = 1 container per month
DR = 1 container per month
USA = 1 container per month (speculation, likely too low of an estimate)
==============
Total = 3 containers per month = $600,000

x12 months with zero revenue increase = $7,200,000 annual revenue (low estimate, 1 container per month)
** Note this does not include the 70m/5 years average of $14mil/year from Brazil/DR contracts, this is simply using a 1 container per month minimum level at the start for Brazil/DR/USA.

Let's estimate the cost of goods sold is 50% of revenue
** Note competitor BEAM cost of goods in 2013 was near 40% of revenue
** Note average cost of goods for Vodka distribution in USA example (~50%)
http://media.wix.com/ugd/39c6b9_9d6ec10a322de16ec848f29cc8fd9729.pdf

Estimated total annual expenses of $1,000,000 (last year was $360k in 6 months ending 12/31/13)


Example 2014 Annual Stats
==========================

Revenue: $7,200,000 (low estimate, 1 container per month)
Cost of goods sold: $3,600,000
Gross Profit: $3,600,000

Operating/Other Expenses: $1,000,000
Net Income: $2,600,000
EPS: 0.006166412119546

P/E ratio of 30 = share price of .185
P/E ratio of 40 = share price of .245
P/E ratio of 80 = share price of .495

**************************************

Example of 5 containers per month = 1m x 12months = $12,000,000 annual revenue

Revenue: $12,000,000 (still low estimate considering 14mil/year Brazil/DR contracts over 5 years)
Cost of goods sold: $6,000,000
Gross Profit: $6,000,000

Operating/Other Expenses: $1,000,000
Net Income: $5,000,000
EPS: 0.011858484845281

P/E ratio of 30 = share price of .35
P/E ratio of 40 = share price of .475
P/E ratio of 80 = share price of .95

***************************************

Example of 10 containers per month = 2m x 12months = $24,000,000 annual revenue

Revenue: $24,000,000 (estimate with annual 7m Brazil average (per contract), 7m DR (per contract), 10m USA (speculation))
Cost of goods sold: $12,000,000
Gross Profit: $12,000,000

Operating/Other Expenses: $1,000,000
Net Income: $11,000,000
EPS: 0.026088666659618

P/E ratio of 30 = share price of .775
P/E ratio of 40 = share price of 1.045
P/E ratio of 80 = share price of 2.09