Vapor Group Inc (VPOR)

[kuwlness]

Updated Re-post: INVESTOR MATH -- Forward Looking:

If $VPOR can hit ~$35M in Gross Profit as Yaniv alluded to in an interview (linked below), we'd be looking at roughly .0993 in EPS in 2015. Companies in a growing and booming industry often get 20-30x P/E multiples, so that would mean $VPOR could be valued at ~$2-3 in 2015.

For reference, let's use the ONLY other profitable e-cig company I could find, $VPCO. VPCO isn't projecting a whole lot of growth as their product line is fairly limited. VPCO did .06 EPS in 2013 and hit $10 in December 2013, and it's currently trading in the mid-$6s. That's a trailing P/E multiple of over 100x 2013 EPS!


Here's The Math for $VPOR 2015:

2013 Net Revenues: 1,991,023
2013 Gross Profit: 1,124,273
2013 EPS: .00321

2015 Gross Profit: 35,000,000 (forecasted)


Now, we need to figure out how much EPS we'd be looking at if Yaniv's prediction comes to fruition. In 2013, they had gross profits of 1,124,273 and made .00321 EPS. So we now divide 2013 GP by the 2013 EPS and achieve 350,240,809. We now divide the forecasted 2015 GP by this number:

$35,000,000 (forecasted 2015 GP) / 350,240,809 = 0.09993 (2015 EPS)


That is what the EPS number for 2015 would be -- 9.993 CENTS! Forward P/E where VPOR is trading right now is roughly 1.2. That is stupid cheap folks! This number should at least be in the teens.And it will, once Q1 financials comes out and the company updates their forecasts for 2014/2015.


**Keep in mind, the $35M in Gross Profit that Yaniv alluded to was only for their e-cigs.** What will the VAPOD and The Vapor Box THB do for their Revenues and GP?? What other products do they have in the works? Makes you go, hmmmmmm.


This is the article i'm referencing where Yaniv stated $35M: http://tyr.journalism.hkbu.edu.hk/?p=1342



I'll let the Financials speak for themselves and won't try to hammer this home much more. You either see the potential or you don't. Look at our competition, Run the #s, Do the Math, and see what valuations you come to. All I know is, $VPOR is far-and-away the cheapest vaporizer/e-cig company on the market and it will be getting lots of attention in the very near future.