Vystar Corp (VYST)

[doogdilinger]

I simply cannot stress this enough folks as it's important that everyone understands Sterling's valuation models in the post I'm responding to, especially now that we know Rotman's $35M annual revenues will soon be proven via fully audited financials in the fast approaching Rotmans super 8k acquisition filing that could hit as early as next Wednesday!

This isn't a pump...this is fully audited financials from 1 of the most well established companies imaginable getting rolled into VYST's books, removing any and all shadow of any doubt whatsoever how rapid, instant and dramatic VYST's valuation metrics are about to be increased by a registered PCAOB accounting firm>>>

Rotmans generates over $35+ million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin. The fundamental formulas that I will use to derive the valuation for VYST are below so that all may understand:

Revenues x Gross/Net Profit Margin = Gross/Net Income
Gross/Net Income + Tax NOL = Adjusted Gross/Net Income
Adjusted Gross/Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
EPS x Price to Earnings (PE) Ratio = VYST Share Price Valuation

From these variables, we can derive the Fundamental Valuation as indicated below from two different models: Gross Profit Margin Model and the Net Profit Margin Model:

Gross Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 48% to 52% Gross Profit Margin. I will use the 48% to remain conservative. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .48 Gross Profit Margin = $16,800,000 Gross Income

$16,800,000 Gross Income + $31,319,398 Tax NOL = $48,119,398 Adjusted Gross Income

$48,119,398 Adjusted Gross Income ÷ 250,000,000 (OS) = .192 EPS

.192 EPS x 36.53 PE Ratio = $7.13 Per Share Gross Valuation


Net Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 19% Net Profit Margin. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .19 Net Profit Margin = $6,650,000 Net Income

$6,650,000 Net Income + $31,319,398 Tax NOL = $37,969,398 Adjusted Net Income

$37,969,398 Adjusted Net Income ÷ 250,000,000 (OS) = .151 EPS

.151 EPS x 36.53 PE Ratio = $5.51 Per Share Net Valuation

The company told me that FINRA will likely have them roll Rotmans’ financials up into VYST as the financials for moving forward because of how huge the acquisition would be for the VYST. This is why from the recent VYST news released, it was indicated how they are making VYST debt free in preparation for the acquisition. I was informed that they are prepared to roll 3 years worth of audited financials up into VYST to consummate the acquisition.