DNA Brands Inc (DNAX)

[Ed the Trader]

"Copper for this stock is a very long term thing. Not saying it can't happen but a whole lot of right things have to fall into place for it to get there + revenues, long term hold for that"

Let's get real specific and look at the math.

Let's assume Adrian is successful with his plan to dilute all the way to 25 billion shares outstanding.

Market value of any company is the total number of shares outstanding multiplied by the current price of each share.

In that case, if the PPS were one penny, the company would have a market value of $250 million:

25,000,000,000 total shares outstanding X $0.01/share = $250,000,000

DNA Brands, Inc. would need substantial revenue to be worth $250 million, and sales will not be close to that for years, even under perfect conditions.

Book value is the total value of the company based on its assets with its liabilities subtracted.

Market value can be several times book value, but even if market value is five times book value (which is a reasonable multiple), that still would require DNA Brands, Inc. to have a book value of $50 million if the PPS is one penny.

Whenever I discuss these topics, there are always those who point out that this is the land of OTC Pinks, not NASDAQ. People don't care about fundamentals such as market value and book value for subpenny stocks because subpennys run purely on hype. That is true enough for most subpennys, but most subpennys do not have 25 billion shares outstanding. Hype is not sustainable long enough to push 25 billion shares through many price points, and certainly not through 100 price points all the way to one penny.

Hype lasts for a day or two, and that is enough to potential push the PPS for one, maybe two, ticks on the price, not dozens.

The only thing that will push that many shares for more than a day or two is performance, and performance is the only way this stock will ever run with this many shares outstanding.

Hope for stellar sales results from the first batch of DNA.