First, I decided to make the decision to trust MJTV because they are a fully reporting SEC filing company that files audited financials. Ok, even if they filed under the Alternative Reporting Standards, I would still trust them based on doing my due diligence (DD). I believe that the MJTV Team is here with very good and genuine intentions to grow the company into a powerhouse: https://mjbiotech.us/the-mj-biotech%2C-inc-team
Because they have released this substantial PR, I believe that this means that we should be getting ready to see some updated financials and more news regarding this recent PR that I will explain more about later.
They are selling right now their FDA Approved COVID-19 Antibody Test Kits for $128.30 to laboratories, physicians, Indian Health Services, clinics, medical offices, hospitals and university health services from their website below:
Before I explain how to confirm their test kits within the FDA website/database, I think we should quickly go over some potential Revenue numbers. I think it’s clear to see that COVID-19 (the Coronavirus) is not going anywhere anytime soon. It’s pretty obvious that hundreds of millions of these COVID-19 Test Kits are going to be in huge demand to be needed now and over the coming, days, months, and who knows the time frame all over the world. So the question for one to consider is… How many millions and millions of these COVID-19 Antibody Test Kits do you think MJTV will sell?
Let us presume some examples considering from 1,000,000 to 10,000,000 COVID-19 Antibody Test Kits sold for their price of $128.30 to get an idea of what can be generated for Revenues:
$128.30 x 1,000,000 COVID-19 Test Kits Sold = $128,300,000 Revenues $128.30 x 2,000,000 COVID-19 Test Kits Sold = $256,600,000 Revenues $128.30 x 3,000,000 COVID-19 Test Kits Sold = $384,900,000 Revenues $128.30 x 4,000,000 COVID-19 Test Kits Sold = $513,200,000 Revenues $128.30 x 5,000,000 COVID-19 Test Kits Sold = $641,500,000 Revenues $128.30 x 6,000,000 COVID-19 Test Kits Sold = $769,800,000 Revenues $128.30 x 7,000,000 COVID-19 Test Kits Sold = $898,100,000 Revenues $128.30 x 8,000,000 COVID-19 Test Kits Sold = $1,026,400,000 Revenues $128.30 x 9,000,000 COVID-19 Test Kits Sold = $1,154,700,000 Revenues $128.30 x 10,000,000 COVID-19 Test Kits Sold = $1,283,000,000 Revenues
The Fundamental Valuation of a stock is determined by using the Outstanding Shares (OS) as the denominator within the market to determine where a stock should fundamentally trade within a particular Industry or Sector. The last reported OS for MJTV is 338,368,257 shares: https://www.otcmarkets.com/stock/MJTV/security
I will just say that even if you choose to double or even triple the OS for MJTV, do a valuation and see where the fundamental value for MJTV will end up at. It should be either close to a dollar or likely well into the dollars for some. Ok, a quick valuation. Let’s say that since they are likely signed into some Distribution Agreement with a company (hint hint) that is already FDA approved and that has a manufacture (hint hint) that is also FDA approved or they are likely signed into some Distribution Agreement directly with a manufacturer (hint hint) that is already FDA approved. This means that there would be extremely low factory overhead for MJTV so they would probably have minimal Expenses. Still, even from this valuation model, I will give them a 50% Net Expense Margin which would mean that there would be a 50% Net Profit Margin. Let’s consider a fundamental valuation from them selling only 1,000,000 kits per year at their $128.30 for their price indicated. See below
$128.30 x 1,000,000 COVID-19 Test Kits Sold = $128,300,000 Revenues
$128,300,000 Revenues x 50% Net Profit Margin = $64,150,000 Net Income
$64,150,000 Net Income ÷ 338,368,257 shares (MJTV OS) = .189 EPS
Now we must consider a fair Price to Earnings (PE) Ratio to multiply that .189 EPS (Earnings Per Share) by. I will consider 15 even though I think the growth rate for the Industry is far higher.
15 PE Ratio x .189 EPS = $2.83 Per Share MJTV Valuation
As you can see, this is just from using the minimum number in the Revenues model considering if they only sold 1,000,000 COVID-19 Test Kits per year. So, my question to all is…
Do you think and truly believe that they are only going to sell 1,000,000 COVID-19 Test Kits in this day and age?
To ”Compare and Contrast” with a similar stock, DECN ran to .497 per share with having a very similar OS of 332,025,278 shares. DECN was doing something similar but got in trouble because they did not have their COVID-19 Test Kits identified to be approved from the FDA. Also, DECN did not even have any test kits to be sold at that time, let alone any test kits approved and it still ran to .497 per share. Here with MJTV, they have their test kits approved by the FDA and they are ready to be sold immediately right now.
Now let us get back to the FDA confirmation within the FDA website/database…
This is how I derived that their COVID-19 Antibody Test Kits were approved by the FDA within the FDA website/database.
Step 1 I went to Google and did a search on the words COVID-19 test kit. I click on the images for the link to see if I could find a box that either looks like MJTV’s kits or similar. After scrolling down a little, I saw a box that looks exactly like what MJTV is selling from a company called Aurora Biomed:
Step 2 I then went to the FDA website to see if anything was there confirming that these particular COVID-19 Antibody Test Kits were approved by the FDA within the FDA website/database and yes, Aurora Biomed was there as indicated below as the page was last updated recently on 12/07/2020:
Step 3 From the Aurora Biomed website below, I further found the FDA Emergency Use Authorization (EUA) Letter to confirm that those tests were approved by the FDA and that they were approved to be manufactured by Assure Tech. (Hangzhou) Co., Ltd: https://www.aurorabiomed.com/covid-19-igm-igg-antibody-rapid-test-kit/
Step 4 From there, I went to the FDA to obtain further confirmation that Assure Tech. (Hangzhou) Co., Ltd was approved by the FDA to be the Manufacturer of those COVID-19 Antibody Test Kits as yes, they are as confirmed further from below:
Step 5 In summary, there are some other companies such as Confirm Biosciences, etc. that are in the same position as Aurora Biomed that could be who MJTV has the deal with. Or MJTV could have a deal straight from the Manufacturer, Assure Tech. (Hangzhou) Co., Ltd. The more I think about it, the way that MJTV stated… ”IN STOCK FOR IMMEDIATE DELIVERY”… for their FDA Approved Emergency Use Authorized (EUS) COVID-19 "Coronavirus" IgG/IgM Rapid Test Kits, such leads me to think that they have a contractual agreement to deal directly with the Manufacturer, Assure Tech. (Hangzhou) Co., Ltd. Also, the particular way they used the word ”Our” within the PR indicated that they have more of an ownership of the product versus a distribution agreement to share the Revenues. This means that those valuations numbers above early on within this post could likely double or more.
Regardless, MJTV is still in its infant stages as their recent PR strongly suggests that much more is coming. I am expecting to see updated financials and the names of these laboratories, physicians, Indian Health Services, clinics, medical offices, hospitals and university health services for whom they have these deals with along with the amounts of kits sold. I am also expecting to see updates of who is this experienced Medical/Pharmaceutical Representative sales force to distribute and engage the Medical Community that they are currently establishing based on the PR.
To close, again, I think it is important to remind people of what transpired to ”Compare and Contrast” with a similar stock, DECN that ran to .497 per share with having a very similar OS of 332,025,278 shares. DECN was doing something similar but got in trouble because they did not have their COVID-19 Test Kits identified to be approved from the FDA. Also, DECN did not even have any test kits to be sold at that time, let alone any test kits approved and it still ran to .497 per share. Here with MJTV, they have their test kits approved by the FDA and they are ready to be sold immediately right now.
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