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What is BWMG(Brownies)Worth? HowFarCanTheStockGo? ResearchCompilation

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Brownie's Marine Group reports 9M results Seeking Alpha - 11/23/2021 10:54:22 AM
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Brownie’s Marine signs exclusive distribution with Bright Weights Seeking Alpha - 5/21/2021 10:12:56 AM
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Brownie's Marine Group reports Q1 results Seeking Alpha - 5/17/2021 5:10:39 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 5/11/2021 9:15:48 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 4/16/2021 9:15:44 AM
Brownie's Marine Group reports Q4 results Seeking Alpha - 3/31/2021 5:17:35 PM
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geodan   Friday, 11/25/16 02:58:35 PM
Re: None
Post # of 17914 
What is BWMG(Brownies)Worth? HowFarCanTheStockGo? ResearchCompilation

Why did I take a big position in BWMG? Last week, after they released their Q report, BWMG had more Cash than Market Capitalization (total value of 100% of stock), More Profit than Mkt Cap,and a Float (non-insider stock) of about $130,000!! It was an easy decision with Mkt Cap if $260,000 and cash over $300,000, and profits of over $300,000 in the last 9 months alone. And it went book value positive from negative book too. It also had a Prices/Sales ratio of 0.26!!, the normal in sporting goods is 1.8 according to Yahoo. So BWMG was undervalued by a factor of 7, meaning that if the stock went up 5 times to $.035 it would be just at average value and of course have huge momentum at that point.

It is super rare for a stock to have more cash and more profits per year than market cap.

First here are some posts and SEC reports that give a good background on BWMG:

1. Before taking a big position you need to know how many shares are out and how many options and convertible debt there is in terms of dilution potential possible. I bot about 4.6% of the company, 2% before Q Report 10 days ago and 2.6% more in 3 days after Q and now have a 140% profit on that investment (correction now 200% it went up more while writing, now am proofing, this is getting to be fun smile ). I was able to talk to the company and they explained the situation. A very rare thing but BWMG, they have been able to greatly reduce their share count in last year, instead of boosting it. AND the convertible debt is benign as such things go. Here is the report from that conversation: T,Did speak with company. ConvertiblesBenign smile TalkWithCompanyOnDebt Better than expected.

2. This post goes into the advatages of finding a profitible company with very low float, that was written here, Before the big rally started: Examples of Low$Float Stocks Lately DRYS,BTUUQ (BWMG)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=126611254 For the record I have only had two stocks that immediately doubled after taking the majority of my position, PTSC and TASR and as of last Friday, now BWMG. PTSC ended up doing a 27 bagger for me in less than 2 months in 2006, $.08 to $2.20. For the record have only seen one company since 2006 in same business as PTSC (hi tech patent sales to NASDAQ 100 companies) with similar value, it is NTIP and it is right now, cash roughly equals mkt cap and huge profits.

TASR was before that, and it got away. Doubled my money on TASR (it was dirt cheap when bot it) in 1 week, was thrilled, sold it waiting for pullback, and it went up about 50 times more than sold it for. Learned a lesson.

3. BWMG, Brownies is a famous American company that sells diving equipment. It is over 40 years old and the CEO takes no salary. Watch a video of their two main products here http://www.browniesmarinegroup.com/ The company is fully reporting to the SEC. Here is their last Quartley Report from last week: http://ih.advfn.com/p.php?pid=nmona&article=72903979 which shows the wonderful cash and profits and greatly improved balance sheet.

4. This article is the most in-depth, it goes into BWMG and how to make really big profits in super undervalued stocks like BWMG:
Floggers Of Worse Than Worthless Stocks (like SUNE), There Is A Better Way, Flog Real Companies http://www.investorvillage.com/smbd.asp?mb=17989&mn=9&pt=msg&mid=16595128 Strongly suggest reading the whole report.

5. Post from 11-15-2016 Here, before rally started: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=126568428

First part clip: I now own 4% of company,Price is most overlooked thing by most investors. Graham, Buffet's mentor, paid the most attention to price. Right now BWMG has mkt cap of $260,000. That means the most all investors can possibly lose is $260,000.

Sales are about $1.8 million or 7 times higher.

Cash is $305,000

Net Profit is $325,000 just for first 9 months of 2016

There has been about $360,000 improvement in book value in last 9 months from negative to positive
Total stockholders’ equity (deficit) now+$174,245 Jan1 -$186,384

Lets say 2017 is like 2016 then it would be about $700,000 cash and over $500,000 book value.



OK those are the basics, what is a reasonable price target for BWMG?

A. Based on Sales: 1.8 Price/Sales is the normal value Yahoo says for sporting goods. BWMG was about 0.26 Price/Sales after the Q came out, so 7 times too low. If it just gets back to normal, that is .005 x 15 bagger = $.035 Share Price

B. How about P/E ratio? With $325,000 Net Profit roughly what does that work out to? Zacks says 24 P/E is the average for microcaps: https://www.invesco.com/static/us/investors/contentdetail?contentId=5d1407c649400410VgnVCM10000046f1bf0aRCRD and right now the SP500, biggest cap stocks, is 23, so we will be conservative and say 20/ P/E ratio. 20 x $325,000 = $6,500,000 Right now Yahoo says at .0143 BWMG has mkt cap of $883,000 but Yahoo has 58 million shares and now it is 68 million http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=11701802-3789-5813&type=sect&TabIndex=2&dcn=0001493152-16-015370&nav=1&src=Yahoo so roughly at 20 P/E ratio BWMG would have a .096 share price or 19 times higher than the .005 of last week.

So both it terms or profits and sales BWMG stock is worth .035 to .10 a share, way higher than it is today, even though BWMG has (now) tripled in last 10 days.

C. How about Momentum?
If BWMG goes to just an average value, that would be lets say mid range .07. At .07 BWMG will have to go up 14 times from last weeks price of .005.

How are people going to be feeling about BWMG then? Things like jumping for joy, euphoria, telling all their friends about the 14 bagger they got, etc. That will bring in Momentum Players, Momos. There are several Momo boards here at iHub, Momentum Players tend to do well, it is a proven strategy, buy big mo and sell it at higher mo. They if not already in will see a 14 bagger as just an average valuation at roughly 20 P/E and 2 x Sales. They will see a tiny Float.

What do you think will happen then? Well having been blessed to experience this several times before, the normal thing is it goes to over valuation.

When I bot TASR and got a double in one week (that one got away) and sold, it became a national story after it was a 10 bagger, the CEO was being interviewed on CNBC. They would put out a PR that they sold $30,000 of vests to the Cleveland Police and the stock mkt cap would go up by $10 million!

Just looked at a chart TASR went from $0.31 to $32, a 100 bagger in 2003/4, it dropped back to $6 in 4 months later.

It was silly over valued at $32.

I actually cashed in on my last sale a 27 bagger in PTSC at $2.20 in less than 2 months and it was maybe worth .30 when I bot it at .08.


I made about a 27 bagger on CLGRF and just exited this August, but that was slower and it was never all that overvalued, maybe just 50% so.

So a double or triple or even more is possible for BWMG here, but just fair value without momentum would give me a 14 bagger which will thrill me. What do you think BWMG can go to? See its .15 now, when started writing this 30 minutes ago it was .12 another 25% while writing!! smile Now a 3 bagger for me smile

If with momo it goes 3 times normal valuation that would be about $.20 a 40 bagger. Again I will be thrilled with 14 bagger.

Cheers


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