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shotsky I generally agree with your post. I once ventured the possibility of a profit margin of about 2% as a mere guess. One reason why I expect it to be low is that normally the profit margin decreases when the volume of a deal increases. But I am open to thepossibility that it may be somewhat higher. If revenues of 2.5 billion dollars are generated this year net profits would be 50 million dollars. A modest p/e ratio of 10 would lead to a market cap of 500 million dollars or about 8 cents per share, or more than 10 times the current pps.
jdc It is sad that you don't admit facts. This question of profit margin has been discussed a number of times before. Mr. Park has stated gross profit margin some days after he referred to a profit margin of about 18%. It is deplorable that posters here are not familiar with this fact.
jdc Actually my knowledge is better than yours and even if I at 81 years old have a poor memory it seems better than yours too. It is true that John K. Park first stated an approximate profit margin of 18%. That is one reason why I don't fully trust him. He later corrected it too gross profit margin, which is actually of little interest. A company may well have a gross profit margin of 18% and a negative net profit margin. My view is that it suggests total cluelessness that buying vast amounts of sugar in Brazil and transporting it to China would result in a net profit margin as high as 18%. Other companies would of course offer a much better deal for sellers and buyers if that had been the case.
Too good to be true? In my view there is no doubt that this was the reaction of the stock market yesterday. A few weeks ago the pps reached a high of $ 0.0121. The pps at the close yesterday was $ 0.0073, which is a lot lower. In my view this suggests a high degree of distrust when it comes to the big sugar contract.
peeved I remember Mr Park stated that he did not do brokered deals and that the net profit margin was generally higher than 1 - 2%.
Golfpad The gross margin is supposed to be about 18%. However, it is impossible to deduce the margin that matters for the stock market - the net profit margin from the gross profit margin. There is no information available about an anticipated net profit margin. Therefore, it is in my view impossible to calculate the most probable net profit the contracts can be expected to generate.
Xman4 What I like a lot is that we have more details than before. The sugar will be shipped over the remainder of the year. That sounds more credible than one very big shipment. We will be able to get the actual revenues confirmed in quarterly reports.
jdc Fantastic! Much better than anticipated.
I think it is very positive that Mr Park is ready to spend some time to talk about his company with shareholders and others.
getmoney If these "executed contracts" result in a decent profit margin this stock is definitely grossly undervalued. The challenge is that the stock market clearly does not trust this information. I guess we may know by the middle of May (quarterly report) what the truth is.
Step You clearly have not ignored the bashers. I find next to no new posts.
nicehit "The more we distance ourselves from SPZI, the better for this new company." I agree. SPZI has a history that does not enhance trust in the company and its lraders.
stervc I think you make many good points. A topic that is very rarely addressed is why pays the bashers if they are paid and for what purpose. How important are short positions in this context?
nicehit I think too that these deals are complex. I rather find it reassuring that it takes time to finalize a deal. I find it sspicious if there are a serious of deals that are published one after the other within a short space of time.
chum The sugar contract that was supposed to come by the end of January did not come. We should be truthful when that does not serve the interests of the pumpers too. Truthfulness enhances credibility, lying undermines credibility.
learningthetruth You present a false statement as far as I can see about a sugar contract! Your proof relates to "NATE’S FOOD CO". SPZI has no relation to that company. Moreover, SPZI referred in recent information to talks in Brazil about a sugar contract, which suggests that a possible sugar contract may be signed in the future. Stop lying!
The float has been more than 5 billion for more than a decade.
shotsky Because I am uncertain about the credibility of this company I decided to reduce risk by selling about 3 million shares reducing my stake to 4.5 million shares. 'the money was switched to SMCI that has a market cap of about 34 billion dollars. So far my stake has jumped 25% in value whereas my stake in SPZI is down almost 20% in the meantime. This was mostly luck and not wisdom.
shotsky I think it is naive to trust all filings. I have in the past mentioned NASDAQ-listed TIO where the filings presented totally false information despite the fact that the auditor was Deloitte - well known all over the world as far as I know.
learningthetruth
Who came up with the ties? It has been debated for weeks what the float is - either 576 million or almost 10 times that number. I have claimed several times that the latter is the case. This view has been opposed by people I had the impression were longs. There may have been two reasons. OTCMarket had a stupid mistake claiming that the former was the right number for the float. At the same time it provided a DTC (?) number that was almost 10 times as high. The motivation of the longs was I guess that the lower the float is the wilder the swings in the pps, which is the ideal situation for traders. My impression is therefore that longs are largely repsonsible for the wrong idea about the float. As fas as I remember at least an active basher has stated that the float was more than five million shares. The truth will out I guess.
Very encouraging news Laxmi!
dranes I don 't know his motivation but my impression is that he documents his information. Posters may disagree on how important that information is.
RD Then I have misunderstood. I got the impression that it was the only alternative from reading the text. If I receive the cash I can spend it on a potential tax charge. Thanks for removing my wrong interpretation!
jdc Who cares what you think?
jdc I totally disagree that he posts bullshit. He posts facts that are relevant for the pps in my view.
Roemp Thanks! To me it seems how uncertain how much responsibility he has for the facts you have documented.
Dranes That was my impression too.
Roemp Does John Park own this property or is he only associated with it, possibly having some responsibility for the way it is run?
Dear Laxmi It is not important for me to get a quick reply. What is important that I have a valid basis for my actions. For instance I sold some high-risk American shares very recently and bought shares that are less risky for about 30,000 dollars in case I have to pay a big wealth tax this summer. I could not risk that this value had evaporated before summer. This was my real motivation.
RD I rceived the e-mail without a problem. It raises some issues that I think should be addressed in a public place since I may not be the only person who is very disappointed. A hope now is that only three verticals have tokens that were supposed to have a commercial value of 10 dollars each at the turn of the year.
Dear Laxmi,
I am extremely disappointed to learn that there will be no cash remittance as promised. RD stated not long ago that there would be such a remittance and I had the impression that it would happen by the middle of March at least. To me it is hell to envisage dealing with tokens. I therefore have one question for you. Can you find somebody that is willing to buy the tokens that replace the cash rtemittance for at least half the amount of money I had been promised and that you will remit that sum of money to me? 50% would be about 10,000 dollars to be remitted to me. If you cannot it suggests that the tokens are worth a lot less than the sum of money that was supposed to be remitted.
If you stick to the idea that the tokens in 3 verticals are worth 10 dollars each I may have to pay a wealth tax a of a bit less than 25,000 dollars. If that value goes for more than 3 verticals the sum will accrease accordingly. I have altogether staked about 50,000 dollars in your companies. The return the way you run your business be another 25,000 dollars in a wealth tax which would seem to be based on undocumented value and no cash remittance and tokens that are of no value to me since I can't handle them.
I am happy with the news today because it in my view enhances the credibility of the company by engaging what seems to be competent people. I am interested in long-term investment. But the pps is down more than 10% from the high. I guess the reason is that short-term traders dominate this stock and they had expected news about contracts that would have made the pps soar short-term so that they could have sold shares at a nice profit.
My impression based on my memory is that the sharecount is about 60 million shares. Thus about 25% of the outstanding shares seem to have traded today. This seems to me to be about 10 times what is reasonable to expect. The wild swings in the pps recently makes me think that this stock trades like otc stocks with a stock price that is less than 10% of a cent. But the pps is in the thousands of dollars. How come?
shotsky What I find a bit hard to understand is the reason for paying the bashers and why they act that way? Is acting in this way worth what is paid to the bashers? I would have thought that some bashers deserve being paid a good deal more than others. Is that so in practice?
Thanks for useful information RD!
Halkid The is correct because the prededing word is the identity of the person I reply to. I forget if there should always be a comma after "The other day,...". But I wrote leadung because I hit the wrong key.
gary Shame on me! I did not proofread this time either. There were two alternatives, either using and as you suggested or using the preposition in as I did but that required -ing after the coming verb. There are various types of mistakes. Some are due to ignorance some are due to being sloppy.
love The other day I noticed a pumper who bashed bashers for their imcompetence when it comes to writing correct English. I wanted to demonstrate that this goes for a leadung pumper too.
gary I did not write the word you refer to. I copied a text but I made a mistake in started the copied text a letter later than I ought to have done. I should have proofread the text before it was posted.
learningthetruth Where did you get your deficient education? Evidence that it is deficient: "OHN PARK is taking this Massive company JP 3E and all it's conglomerates into this shell." It should have been its conglomerates. This is a very elementary mistake.
"to good to be true" It should have been too good to be true.