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Re: shoals11 post# 21869

Saturday, 12/19/2015 6:35:59 PM

Saturday, December 19, 2015 6:35:59 PM

Post# of 50023
I understand Rontan's most recent annual sales was in the range of US$125M. I'd expect an established company like Rontan to garner net profit of at least 10%-15%, or $12.5M - $19M. (Haven't seen the books, don't know for sure). Joined with GDSI and their NACSV business, plus the increased capacity their synergy will produce, I'd expect sales to climb by 50 - 100%, or to approx $180M - $250M, with net of $18M/year - $38M/year. Due to rapid growth, profits could certainly be less. But because it IS a high growth field, the market cap multiple could easily be around 20X. So halving the profits ($9M - $18M/year) and using the 20X, we get $180M - $360M market cap. Now if you assume some share dilution....say, to 1B Shares, that would make it a PPS of $ .18 - .36. That's 30X - 60X present share price. And these are conservative figures.