Capitalizing cheese
CHCL should be able to realize a gross-profit of at
least 1 yuan per oz. That could translate into an
after-tax net-profit of about US$ 3,000 per American
ton (32,000 oz.)
A company the size of CHCL might be able to produce
1,000 tons or 4 million 8-oz units per year in the
not-too-distant future. Although that would amount to
only a little over 1 cent per share, putting a P/E of
say 12 on that EPS would make CHCL worth 12 cents a
share just for its cheese business.
However, 4 million units is not many given the world's
present population. In time, one can imagine growth
on the order of one or two magnitudes (decimal points)
for CHCL's goat cheese.
Say "CHEESE," shareholders!
