Verus International Inc (VRUS)

[Renegades17]

There's a wide range of valuation scenarios (you know them, but many do not).

Depends on a number of factors including:

1. Financing. After the spin is done, presumably they'll be able to get a working capital deal done to recognize the backlog. They've made it seem like it's close to a done deal. Let's hope that's true. It's been a long time coming for some of us.
2. Gross margins factoring in the new beverage business and other product lines they've been working on.
3. Revenue expansion potential. They've intimated a number of possible business expansion opportunities on a global basis once the spin is done and it's officially just Verus.
4. Multiple. What multiple do you place on a company that could grow revenues 20-50% or more over the next 3-5 years? I've assumed 15-20x earnings in my models, but that could be conservative, particularly if the gross margins can approach 25-30%.
5. Share count. That's been debated a lot here over the past couple of days. I'll leave that one alone.

I'm hoping and have been pressing them to give guidance as soon as possible. Hope that happens soon after the spin is completed.