Tuesday, September 16, 2014 11:47:44 AM
FITX is building an infrastructure that will support in the short term up to 1.3 million pounds of MJ. That would be a multi-billion dollar revenue business with over 60% profit margins.
Forget 1.3 million pounds of MJ for a minute. If FITX produces just 100,000 pounds of MJ in it's first full year ... less than 1/10 (one tenth) of the 1.3 million pounds ... at a sales price of just $2,500 per pound ... the total revenue will be $250,000,000 (two hundred and fifty million dollars) ... at a 60% profit margin, that will be a profit of $150,000,000 (one hundred and fifty million dollars).
Original model: FITX total authorized share count of 3,500,000,000 ... the earnings ($150,000,000 divided by 3,500,000,000) per share would be $0.043 (four point three cents) per share. Then, with a modest P/E (price / earnings) ratio of 25 ... the calculated/justified stock price would be $1.07 (25 P/E times $0.043 earnings per share).
Yes, please re-read this again ... at less than 1/10 (one tenth) of the potential annual growing/distribution volume, the FITX Stock price value would be $1.07 at a modest 25 P/E.
UPDATED MODEL: To further crush the shorts, sellers, and bashers ... reduce the first full year output/sales to 5% of total capacity ... or 50,000 pounds of MJ ... @ $2,500 per pound = $125,000,000. With 3,500,000,000 shares that is $0.021 (two point one cents per share) ... @ the 25 P/E driving a $0.536 (fifty three point 6 cents) per share stock price.
Imagine the stock price as MJ output/distribution increases ... globally to include US entry points of Michigan and Las Vegas markets.
Now, we know why the caliber of executives joining the Board of Directors is so strong.
It's unreal that the stock is trading at seven cents (08/26/2015) and there is a very reasonable pathway to $1.00+ in the very near term ... the bottom being a 1,200% potential increase.
My analysis and opinion is that the Shorts and Sellers have run out of gas and shares ... investors for the longer term now control the stock and are just waiting on the next confirmation of license ... further build out ... and, growing start.
Then, as triple digit growing, distribution, sales, revenue, and profit growth occurs week after week, month after month, and quarter after quarter ... the stock price should continually and consistently rise in this new growing multi-billion dollar growing industry.
See stock price valuation model posted ... indicating a minimum $1.07 stock price at less than 1/10 (one tenth) the projected capacity of the facility. The $1.07 is more than15 times higher than today's stock price ... what does that mean? Look below:
- $1,000 investment today = more than $13,000 at a $1.07 PPS.
- $10,000 investment today = more than $130,000 at $1.07 PPS.
- $100,000 investment today = more than $1,300,000 at $1.07 PPS, and, that would be at 1/10 (one tenth) of the facility's capacity!
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