Verus International Inc (VRUS)

[asymmReturns]

Multiples

If you are on board with a 3x multiple of revenues (which seems reasonable to me), $30mm revenue by year end represents a price of 3.9¢/share. ($250mm sales, 10.9¢). Turning inventory - we don't yet know how effective they will be here, but that's an important factor. They are definitely going to need a lot more credit to ramp to that $250mm level, but I think they'll get there.

I think they are laying the groundwork this year (the revolver of only $500m is a huge first step to form the relationship with banks) and will be working out operational challenges that pop up as they scale. Just my belief, but I think they'll really start cranking in 2020 and 2021 will be great.

Not investment advice. Just arithmetic. And a dude with opinions.