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Re: Damannn69 post# 112680

Tuesday, 10/31/2017 8:59:03 AM

Tuesday, October 31, 2017 8:59:03 AM

Post# of 179942
Not anytime soon based upon the simple math of the company. (Of course, it is always "possible" in the short term if the market acts EXTREMELY irrationally, but I wouldn't count on it.)

Simple Math: 500M shares currently outstanding, with another 500M shares that are promised to be issued to a specific individual. This means, eventually - probably sooner than later - another 500M shares will be added to the outstanding shares.

$1.00 x 1B shares = market cap of $1B. At a P/E ratio of 15, this requires $66,666,666 in Earnings (not Revenue - Earnings!) Currently this company's earnings is under 10% of its Revenues. Accordingly, it will take annual Revenues (sales) of approx. $666,666,666 to generate $66,666,666 in Earnings, sufficient to support a $1B market cap at a P/E of 15, for $1.00/share.

If the additional 500M shares are never issued, the numbers cut in half and it still takes $333,333,333 in annual Revenue to generate the $33,333,333 in earnings to support a $1.00 PPS at the current 10% profit margin.

Again, this is assuming 10% of revenues is the earnings ratio while they continue to build the company - the 90% costs can be expected to be fairly static if the company is going to continue to spend on lots of marketing and overhead trying to grow the company and expand into new markets.

If they can improve substantially on this profit margin, while still growing the company and expanding to new markets, it will occur faster. However, three big factors come into play here. (1) New markets will require development costs just like the US market has, so that takes time in each market; (2) The "Base Rate" number of people who will actually use these type of products in any given market, expressed as a % of the population, is finite and most likely a single digit or low double digit % capping realistic sales; and (3) this is a very thinly traded company - less than 1% changes hands on most days. So, the stock is not a popular trade at this point as compared to big board stocks, and the majority of people buying it are on the OTC simply looking for a quick buck - lottery/type payout. This is not conducive to the stock price going up by 1,600% in the short term, though anything can happen.

Either way, without some substantial irrationality in the markets, I wouldn't think it is at all "probable" in any type of short time frame (less than 5 years). So, pray for irrationality! Just do it with your eyes open.

Go POTN.

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