Gary's podcast and other things he's said simply don't have consistency. He's said on more than one occasion that trading for $1 without a reverse split was anticipated, that certainly doesn't square with $4 million in sales, or even earnings. What we know about fluid sales seems to say that alone will be over $4 million. We then must consider equipment sales and leases.
I frankly can't say how distributorships work, I'm sure they're not free, but I'm not sure if they're buying, or leasing the equipment they use to make fluids, or the equipment they may sell to hospitals or other customers. It's been said that the hospital unit leases for $7000 a month, I'd like to see that verified, I think a Roll Royce would lease for less than that, so the price makes me curious. I understand it's a very special piece of equipment, I'd just like to see confirmation of what it leases, or sells for.
We know the U.K. will be getting a tremendous amount of the equipment that's being manufactured. We don't know the terms, or the payment arrangement, but you can bet, the company will be paid. I would suspect that the U.K. alone could result in $4 million in profit, but the only proof will be in doing it.
People here are buying HOCL by the gallon, we know it's not cheap. The company and it's distributors are generating tens of thousands of gallons daily. I don't know how much money the company is paid for each gallon a distributor makes, but we know they pay something, even if it is only $1 a gallon, that's tens of thousands daily, plus all the money they earn from generating HOCL themselves.
We're half way through the year, so roughly 130 working days remain. Let's just say that the distributors all make a combined 10,000 gallons a day, and they only work the 5 business days a week, that would be 1,300,000 gallons. While I believe the company makes $over $1 for each gallon made by the distributor, let's say it doesn't so that's $1.3 million for HOCL from distributors, pure profit as the company pays nothing for the distributors to make it. During the same period, the company's making an equal amount, but allowing for operating costs lets say they clear $5 a gallon, that's $6.5 million, all totalled that's $7.8 million, but remember, that's for 6 months. They haven't been on vacation the first 6 months, so lets say it was less, but combined lets put it at $12 million all profit. Does this seem like a reasonable estimate for fluid alone, I believe it's very conservative.
Now lets look at the equipment being put into hospitals. We know about 20 or so already equipped, and based on what Gary suggested, 2 to 3 hospitals a month more, that puts us somewhere in the 30's or higher in U.S. hospitals, and let's say the average is something over 2 units per hospital. Say the total installed in the U.S. is 70 units. Let's say we're way off about $7000 a month to lease each unit, what if the company makes just $20,000 a year. That would be $1.4 million from those units next year, but say $1 million this year. Once again, I believe these are very conservative figures, feel free to disagree. This has our total at $13 millions of pure profit for the year.
Finally we're supplying approximately 20 or more units a month, on average, for 6 months, that's 120 units. We don't know the arrangement, but if we allow $20K pure profit for each, that would be $2.4 million. Let's just call it $2 million for a grand total of $15 million in earnings. Let's say our O/S grows to 600 million, that's substantial growth. This comes out to earning $.025 a share, with a P/E of 30 we're at $.75.
I believe all these estimates are conservative, in fact double or better is very possible. Ask DE, I believe most Level 3 distributors are making more fluid by far than what I allowed for fluid, I also think the company may get more than $1 a gallon for the fluid it's distributors produce, if I'm correct, this is a very conservative estimate.
Please feel free to tell me where I've exaggerated what the company might be expected to earn.
Gary
