Minerco Inc (MINE)

[libertyghost]

2 mil contract math:

If our high ball numbers of $.25/bottle to bottle and package and if they use $500K for "other operating expenses", heres what the math says:

$1.5M worth of production:

$1.5M/$.25 = 6 MILLION bottles

Profit margin = ~40% (norm is 30-50%, so lets split difference):

Profit per bottle: $.10

Total Profits from 6 million bottles: $600,000

If this contract requires quarterly restocking:

annualized profits= $2.4M

P/E ration on Beverages: 20.26 (as of Jan 2014) see link:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

2.4M * P/E ratio of 20.26 = $48,624,000

MINE is a 51% owner of Level 5, so 51% of 48.6M = $24,798,240

MINE ANNUALIZED PROFITS FROM JUST THIS ACCOUNT: $24.8 MILLION

this is the profits just from the "BI-COASTAL Soft Launch". I also believe that I used VERY CONSERVATIVE numbers here.

If anyone else has done some other math, or disagree with my numbers, please speak up! I don't have a background in the bottled beverage industry, so I'd love to hear what others predict here!