Pennexx Foods Inc (PNNX)

[stervc]

PNNX Valuation of $15.00+ Per Share Minimum…

Below, I will explain how and why I believe PNNX is worth a minimum of $15.00+ per share and that over time, the market will see this.

First and foremost, I used the word ”minimum” within the title of this post because the valuation below is derived only from the revenues generated from their acquisition of Triple 888’s Logistics, Inc. only. We have yet to learn how and the amount of revenues that are to be generated from their acquisition of Your Social Offers, but we know it’s coming which will likely be potentially more revenues.

The PNNX recent news and 8-Ks definitely makes PNNX to be worth quite a few dollars as I now believe I can clearly explain how. Before I explain this in significant detail, I think it is important to go through what I call the ”Steps of Legitimacy” to help those that might be new to PNNX understand how the company has gotten here in such time frame. Observe the Key Developments below:

Key PNNX Developments

1 ** Pennsylvania Secretary of State (SOS) updated and Active confirmation:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151354182

2 ** 18 Annual Reports filed in a matter of days:
https://www.otcmarkets.com/stock/PNNX/disclosure

3 ** Outstanding Shares (OS) confirmation of 46,057,322 Shares per Transfer Agent (TA):
https://www.otcmarkets.com/stock/PNNX/security

4 ** Authorized Shares (AS) confirmation of 50,000,000 Shares per Transfer Agent (TA):
https://www.otcmarkets.com/stock/PNNX/security

5 ** Float shares in circulation confirmation of 10,130,146 Shares per Transfer Agent (TA):
https://www.otcmarkets.com/stock/PNNX/security

6 ** New PNNX Twitter:
https://twitter.com/pennexx

7 ** New PNNX Website and TEAM:
http://www.pennexxfoods.com/about.html#team

8 ** PNNX Tax NOL in the area of $34.9 Million PR:
https://www.otcmarkets.com/stock/PNNX/news/PNNX-Discloses-a-349-Million-NOL-and-Completes-Your-Social-Offers-Acquisition?id=243431

9 ** PNNX confirms the company is 100% debt free and fully funded:
https://www.otcmarkets.com/stock/PNNX/news/PNNX-Discloses-a-349-Million-NOL-and-Completes-Your-Social-Offers-Acquisition?id=243431

10 ** PNNX confirms no convertible debentures, 504s, or 3(a)10 exemptions:
https://www.otcmarkets.com/stock/PNNX/news/PNNX-Discloses-a-349-Million-NOL-and-Completes-Your-Social-Offers-Acquisition?id=243431

11 ** PNNX confirms there is not any other dilutive mechanisms existing:
https://www.otcmarkets.com/stock/PNNX/news/PNNX-Discloses-a-349-Million-NOL-and-Completes-Your-Social-Offers-Acquisition?id=243431

12 ** PNNX CTO Vincent Risalvato sold his company to Paul Allen, cofounder of Microsoft:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151663906

13 ** PNNX CTO Vincent Risalvato believes PNNX has potential to be a Billion-dollar company:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151663906
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151735659

14 ** Acquired “Your Social Offers” as a wholly owned subsidiary per PR & 8-K:
https://www.otcmarkets.com/stock/PNNX/news/PNNX-Discloses-a-349-Million-NOL-and-Completes-Your-Social-Offers-Acquisition?id=243431
https://www.otcmarkets.com/filing/html?id=13677639&guid=-C7SUpV3q_BULth
“Your Social Offers” will offer pre-paid Master Cards, universal gift cards, loyalty and rewards program, the users will be able to utilize this system to choose from a list of categorized coupons and add them to a shopping list.

15 ** Acquired “Triple 888’s Logistics, Inc.” as a wholly owned subsidiary per PR & 8-K:
https://www.otcmarkets.com/stock/PNNX/news/PNNX-Acquires-Triple-888s-Logistics-Inc-and-its-Intellectual-Property-Bit-Gift?id=244020
https://www.otcmarkets.com/filing/html?id=13693187&guid=-C7SUpV3q_BULth
“Triple 888’s Logistics, Inc.” owns the intellectual property for BitGift, its trademark (“Bit Gift”) as well as the domain name bitgiftme.com. BitGift is an open loop prepaid gift card which can be redeemed for an equivalent value in Crypto Currency or used for real time redemption in fiat currency at any merchant in the world that accepts MasterCard.

Before going any further, please read the details within the post and PR links below to fully understand how PNNX is planning to generate a minimum of $?14,750,000? Revenues per year and $?12,750,000? Net Income per year from their acquisition of Triple 888’s Logistics, Inc. as explained:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151866480
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=151869646

Now we can derive a PNNX Fundamental Valuation for where PNNX should fundamentally grow to trade as a minimum. Again, I say as a minimum because this valuation only include the revenues from their acquisition of Triple 888’s Logistics, Inc. as we have yet to learn how the revenues are to be generated from their acquisition of Your Social Offers which will likely be potentially more revenues.

Also, important to note, as indicated within their PRs, PNNX exist to trade within the Software/Internet Industry which has a Price to Earnings (PE) Ratio of 55.08 derived from a total of 44 of the top profitable companies within the Software/Internet Industry which can be confirmed from below:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

Before going further, I think it is important to understand the logic behind the PE Ratio. The links below should help to better understand the PE Ratio logic as being the ”growth rate” to help assess the fundamental valuation of a stock:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

Now let’s indicate and align some other key fundamental variables to be able to derive a PNNX Fundamental Valuation of which I had mentioned earlier within this post:

Key PNNX Fundamental Variables
** Net Income = $?12,750,000??
** OS = 46,057,322 Shares
** PE Ratio = 55.08

Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
EPS x Price to Earnings (PE) Ratio = PNNX Share Price Valuation

$?12,750,000 Net Income ÷ 46,057,322 Shares (OS) = .2768 EPS ?
.2768 EPS x 55.08 PE Ratio = $15.24 PNNX Share Price Valuation

The $15.24 per share valuation is actually debatable to be much higher because that’s without taking into account the $34.9 Million Tax NOL.

If in the future a more finite number exists for any variable that I used above, use the Substitution Property to replace such variable to any variable to make such thoughts make sense to you. For an example, even if the Net Income is off by a factor of 10x from $12,750,000 to be instead $1,275,000 for Net Income, then the valuation should equate a factor 10x less than the $15.24 per share amount to be $1.52 per share. For now, there could only be differences of opinions regarding any valuation as such would become factual upon what’s later released within the future financials. So please don't take the valuation post too serious as if it's the gospel. Again, only use it as a framework to use to be able to better gage a fundamental valuation once the actual numbers are indicated.

PNNX is transforming from a trade to graduate into being an investment. I think PNNX is going to be worth trading at least in the $15.00+ per share range based on what I explained above of which strongly suggests that major updates are on the way given the company’s urgency for getting things done up to this point.

v/r
Sterling