Article explains the price estimates are based on the most conservative estimates. Prices received are based on mid point of quoted shrimp selling prices. But SHMP may end up getting top prices, or higher. That would make the estimated SHMP prices 50%, or more higher.
$8.25 => + $12/share
Also, in the article, it was explained/shown that expenses in the article were put at the maximum, most likely higher than they would actually be.
It was explained that this was done to see if SHMP would still be making a profit with minimum revenue, and maximum costs, and boy was it:
Quoting from article:
My calculations are just for the basic selling of shrimp in America.
I didn't include the money they might make from the licensing of their patented process, and from forming joint ventures for other fish species, such as barramundi, or for the revenues that might be generated by expanding their business overseas.
Even though all of these would be lucrative ventures, there is no guarantee that they would take place. If they do, then the SHMP stock prices could be much higher than what I calculated.
Considering the patent protected, industry revolutionary process that SHMP possesses, it would seem that SHMP's share price should be higher than it is. The problem is, that many other companies seemed to be poised to become major players in shrimp aqua-farming, but then they failed, and investors lost their money. This has made people wary of buying shares of companies that say that they can successfully raise shrimp.
However, once people see that NaturalShrimp is able to consistently raise, and sell superior, sushi grade shrimp, the stock price will act accordingly.
Explanation of terms in calculations
Revenue based on a weekly production of 7,200 lbs of shrimp.
E.P.S. (Earnings Per Share) = (Profit divided by the number of shares in the float)
Calculations are based on a float of 291 million shares (The float number may change over time.)
P/E = 30: When a new company is perceived as having years of strong growth ahead of it, it is given a high P/E, such as 30. As the company enters its growth stage, it can maintain a high P/E for many years.
2020 2021 2022 2023 2024
Revenue: million $ 10.50 30.73 62.62 113.40 169.20
Costs: million $ 8.06 16.86 34.63 61.94 89.26
Profit: million $ 2.44 13.87 27.99 51.46 79.94
E.P.S. 0.008 0.048 0.096 0.177 0.275
P/E 30 30 30 30 30
Share price $0.24 $1.44 $2.88 $5.31 $8.25
Source: Author Me: +$12/share?
