A math lesson....
Remember a few weeks ago when this was at .25 and people were saying it would get to dollars? If they spent all their money then, they would not be able to average down today. Timing the bottom is difficult, and even at .10, this is still up 500% since January. Hardly a "bottom" in my opinion.
For this to get to $1, that would value the company at well over $100M. There is NO WAY that a restaurant with only two locations is worth over $100M. Even McDonalds, let's figure each chain brings in $10M/year, that is $30M revenue gross for three locations, with a 3x multiple is trading at less than a buck. People need to be realistic.
Look at the CPK deal for comparison; Pepsi paid $100M for 67%, which valued CPK at around $130M in 1992. That's equivalent to $227M in 2017 dollars. And that was for 70+ locations. So, doing the math -- PepsiCo valued each location at $227M/70 = 3.2M per location.
Let's assume that each Giggle's location is worth more than that, just for emphasis. Let's presume that each location has a value of $5M in a buyout. Right now there are two, but we'll say three to account for a new location, so that gives the company a value of around $15M.
There are 133M Outstanding Shares. With a total enterprise value of around $15M, that puts the share price at 11.2 cents per share.
And, guess what...this is exactly where the stock is trading right now. If we were to use the CPK value of 3.2M/location, that puts the share price around 7 cents.
Now do you see why $1+ stock price at these levels are sort of absurd, even with a multiple applied?
