Hi Guys,
This mornings news release was just the beginning of great business news for NGW.
Management shows it knows how to run a manufacturing business. And also have expert knowledge of the market and sales to position themselves properly to make the most profit possible within their product groups.
Todays statement of $1,000,000 ebtda was most important.
Wow!!!! On sales of $1,700,000 gross margins
1,000,000/1,700,000 = 58.8%
And NGW only really started selling more NGW branded pre package items in late September and October.
For me the next 2 months sales should be moving towards $2,000,000 per month.
That means 4th quarter sales of $5,700,000. And lets use gross profit % at 60%. A stated goal by Mike at 60% gross profit.
So, $5,700,000 x 60% = $9,000,000.
NGW has 170,000,000 shares outstanding. $9,000,000/170,000,000 =
profit of $.05 per share.
So lets use a PE of 10. That give NGW a near term share price of $.50
My forecast for NGW year end price is $.50
Buying more as funds become available.
GLTA
