Hi Guys,
A lot of thoughts over this weekend for reasons that NGW has move up in price so much in the last several weeks.
Very good news indeed about new products coming to market very soon.
And very important news stated by Mike Jennings our CEO about the companies current EBTA, at 42% with new released items at 60%.
This is great news and why in my opinion NGW stock will continue to go higher.
So here is my recent estimate. Current news releases show NGW easily moving sales at $1,200,000 per month.
My estimates with the new product sales and start up of selling cloning seedlings sales will move up to $1,500,000 by the first quarter of 2021.
That would show sales at an annual rate of $18,000,000 per year.
With EBTA currently at 42% and new items at 60% for estimates lets use 2021 EBTA at 45%.
With sales at $18,000,000 per year and EBTA at 45%, net profit would yield $8,100,000 in 2021.
Now for the interesting part of the above. We currently have 170,000,000 shares outstanding. And lets say that NGW issues another 10,000,000 shares for corporate need in 2021. So lets use 180,000,000 outstanding.
Profit of 8,100,000/180,000,000 = $.045 per share.
A growing and profitable company such as NGW could easily receive by wall street a Price to Earnings ration of 10 times.
That would show the share price at $.45
Very interesting to all!!! Comments appreciated!!
Buying more as funds become available.
GLTA
