Knife, I'd like to further document one point I made earlier, and I'm curious how a logical investor as you are would factor this in within his bullish context on VHUB.
The most recent quarter's sales have come in at around $1.8 mil to take the fiscal year number up to $5.3 mil, as the recent SEC reporting just told us. I therefore wanted to locate the source of the earlier estimate for $6 mil., primarily to confirm that such estimate was indeed for the fiscal year ended on June 30, as contrasted to the calendar year having one more quarter to run. ...and here it is:
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Vapor Hub International Reports Nine Month Sales at $3.59 Million
SIMI VALLEY, Calif., May 26, 2015 /PRNewswire/ -- Vapor Hub International Inc. (OTC: VHUB) (www.vapor-hub.com) recently announced in a 10-Q filing with the Securities and Exchange Commission that its revenues for the nine months ended March 31, 2015 totaled $3.59 million. Gross profit for the nine month period totaled $1.44 million.
The Company said revenues in the third quarter ended March 31, 2015 were $1.09 million with a gross profit of $351,778. In the same period in 2014, revenues totaled $188,540.
"We anticipate reporting revenues totaling $6 million for this fiscal year and we are very pleased by our growing success as a public company," said Kyle Winther, VHUB CEO.
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So here's the problem - On May 26, Kyle projected gross revenues of $2.4 million for the quarter which was nearly two-thirds completed at that time. The full quarter actually came in at $1.7 or $1.8 million. So, the one-month June projection was missed by something like 600K, which is a pretty significant percentage, especially for such a short window of projection, i.e. five weeks from May 26 to June 30.
As I pointed out in my earlier post, $1.8 million in quarterly gross revenues annualizes out to over $7 million in a year - so one can make the case that VHUB really is booming, and really is well on the way towards $10 mil in annual sales, which was the "one year out" estimate in the letter that Paul sent in mid-May when the company was looking for additional equity capital. But, Knife, with how many grains of salt would you take this forecast from management (and to be fair, a management which by the majority of accounts on this board has developed some great new products)?
I think it's the yin and yang between sales which are actually booming versus projections that are somewhat "off the wall" in their optimism that makes this stock so volatile. I was guessing a few months ago, in the midst of a dialogue with Sgreg, that VHUB stock could logically be selling for 9 cents by the end of 2016 (my analytical approach wasn't a whole lot different from yours, Knife). If pressed, I'd stick with that guess as my best guess, but I've got to tell you that I don't have a lot of confidence in it (meaning that the bears on this board, when they are actually presenting their case, rather than when they are just mocking the bulls, deserve to be listened to attentively).
As ever, I've taken up a lot of space, but I hope that this has been worth reading and will elicit some responses.
