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It's an allocated portion of the profits.
What are some of the stocks used to compare a P/E multiplier?
What is your price target for 100 stores?
But I will say profit is different than earnings.
http://www.investopedia.com/terms/e/eps.asp
Earnings are only a portion of profit allocated to outstanding shares.
I apologize. You are correct that they project 23 M$ in profit.
The problem is that you are confusing earnings with revenue, so you can't apply those equations. It's also not profit. So you need to apply a revenue multiplier to determine a market cap. Then determine a pps from market cap.
Anyone??
Any comments on this??
That is what happens in any stock. Always leave yourself an out, and don't trade on emotion. You got out at .05 for a reason.
1. Never have your eggs in one basket.
2. Never invest more than you're willing to lose, especially in otc ( these stocks are here for a reason)
3. Take your profits.
4. Avg down, never up, and only if you have the capital.
5. Personally I wouldn't put more than 20% of your portfolio in any single stock, which I would recommend be at least $500.
I agree madd. They are trying to get promoters to brand, but that's putting the cart ahead of the horse. Imo, at this stage.
Building proper connections takes time. Better to not put out PR than to put out something meaningless.
Some other issues with the valuation you stated, is that it says $10M "net profit" when it's actually revenue. So you CAN NOT equate that to an EPS, let alone give it a P/E multiplier of 20. Profit comes after all the bills have been paid. And there will be bills. Always!
I would say that it's insightful. But is skewed. Mjna market cap trades at roughly 4x revenue. Cgrw trades at slightly over 2x revenue.
Based on 13.5M shares of fofu, if....if a store did $2M in revenue, fofu would expect to see $100k at best.
Therefore each store should add, .015-.03, realistically. And these are companies doing millions of dollars in business.
Imho
If you ask me, this stock has way too poor of volume to be this high. Should reverse split to 2$.
Yeah need to see it in the 5-10M shares per day. I still feel a pps correction is in order. Need to see what the potential revenue from an agreement may be.
I would say average dispensaries might bring in $750k-$1M per year.
Collectively, the three agreements from California may do $2M total. Which is fine. You need to start somewhere. As things begin to grow they would revise, and refine their products, and develop their business over the next few years.
From there the potential revenue should be dialed in, and they should have the ability to quantify future agreements.
I don't weigh the new addition too heavily. I'd like to understand how this addition will truly promote the stock more than their actual business plan.
Well depending on when you got in, it's only down 37% from a month ago. Financials will be the big catalyst. Which possibly will be announced end of April, if they are on top of it. If you were in before a month ago, you should be happy still. Always remember: take profits always. Don't be emotionally involved in ANY stock. There will always be something else to trade. I didn't mean to be so hard on you before, don't get depressed. This stock may go down further for a while. Have a plan and stick to it. Don't have your eggs in one basket.
Like I said, I don't wish anyone to lose money. But be reasonable too, it'll save you in the long run. Gltu
This stock is not in that bad of a position. It's got potential. Volume is down from a month ago, when it made its move. Use this as an opportunity to avg your pps down if you're able too.
Nothing about their business plan has been proven. No financials, so they've got 3 agreements, I'd want to see more than just 25,000$ fee for each agreement. Then I would get excited in anticipation of new agreements. I'm disappointed that their first agreement has produced nothing.
What is the value of their stock to you, based on their current state of affairs? Based on actuality. Not hopes of 1000 stores in 2 years, like some members seem to think.
All I'm saying is this stock is coming down. It has potential. Just not from here.
Haha, so you expect this stock to be valued up due to what? Pumping?
The stock is due for a correction, imho
I'd say money drives stocks in pennyland, sir. Revenue$, investment$, any positive $ news. That sir, is what drives penny stocks.
Yeah. But it needs to be proven. "IF" doesn't cut it. There's nothing to substantiate their business model, yet. So it's not worth the .05 it's at now.
January til April is 3 months. Sign in January expect revenue three months later in April.
Jan-April.
Yep. So if they signed agreements in January, it'd be 3 months til possible news
I'm not even bashing. I'm saying this stock isn't worth .06. Quit hyping it like it should be worth .10 pps
Dude, quit pumping. Be real.
I can't see what it would bounce off of, cap n?
Not to mention they don't expect to be earning any revenue from the agreements til Q2. Potentially 3+ months to get revenue from existing dispensaries. Not to mention there is nothing coming from their agreement signed in August 2014. PPS is going down until news is released about revenue. .03 here we come. Weeeeeeee
It's not worth .06. Need to see some Q1 financials to prove any of their business model. Signing agreements doesn't matter. Money talks.
Lol. That's what I've been saying.
Gltu as well. My guess is fofu will continue down for a while. Possible til Q1 end. I'd sell now and wait for a better entry point. IMHO
You said the company would be 1.5$B on 100$M revenue. In 2-5 years and 1000 stores. Lol
You were predicting possible $1.5billion in 2 years. Is this not how you feel now??
Far from huge. Are they gonna have 50 signed agreements by this time next year? Making $100k per store?
Done what?
Referring to spilledpaintstudios saying he's had fofu for a year and a half
And they got 4 signed up in 6 months. So......
You said 50 stores in one year. I'm saying that unrealistic pumping.