MJTV Valuation Consideration per 10% Net Profit Margin…
To show the magnitude of what we potentially have here with MJTV, golfforpennies, you asked me this below...
stervc..Would you have time to do another pricing evaluation with the net profit and (PE) ratio if we are only distributors of the covid test kit,like you did in post #5813. I am guessing our net profit margin would only be 10% to 20% as a distributor. There are some good points about only being a distrubtor.Mainly you dont have the cost of setting up a manufacturing plant and buying materials.You also dont have to hire a labor force. Thank you very much for your dd.GO MJTV
Here is post #5813 within the MJTV forum that I made earlier for all to read for those who are not familiar with what you are referring of which from the post and the thoughts above, I will indicate some "Key Valuation Variables" to consider and understand so that one would be able to see the flow for how I derived such a huge valuation for MJTV: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=160131388
Key Valuation Variables 1. Presume 1,000,000 COVID-19 Antibody Test Kits sold. 2. Each COVID-19 Antibody Test Kit sells for $128.30 per kit. 3. Presumed Net Profit Margin of 10% from Revenues generated. 4. Presumed 15 P/E Ratio for being conservative. 5. With MJTV being a distributor, they don't have the cost of setting up, buying materials, and maintaining a manufacturing plant. 6. With MJTV being a distributor, they don't have to hire a labor force and deal with those costs associated with such. 7. Post #5813 also confirms/explains how their COVID-19 Antibody Test Kits are FDA approved: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=160131388
Just so all are aware of the valuation forthcoming, it is derived from using the Substitution Property to replace the valuation indicated within post #5813 above presuming MJTV only obtains 10% Net Profit Margin from the minimum amount of Revenues generated from selling only 1,000,000 COVID-19 Antibody Test Kits.
With taking into consideration the logic stated to consider, that means that MJTV will get 10% of the Revenues as the Distributor and the Manufacturer with get the other 90% of the Revenues. The beautiful thing about this would be that the 10% would be basically pure Net Profit or 100% Net Income. Since the manufacturer will be taking on all the debt and expenses (costs) associated with creating the tests, they will get 90%. So, the ratio is 10/90 but I actually think 20/80 would be more of a likely scenario so I will also reflect a valuation considering a 20% Net Profit Margin.
Let’s presume they only sell 1,000,000 FDA Approved COVID-19 Test Kits for their price indicated of $158.30 per kit. That would warrant…
$158.30 x 1,000,000 kits sold = $158,300,000
The Manufacturer would get 90% of the $158,300,000 while MJTV would get 10% of that above amount which would equate to $15,830,000 Net Income. For now, let’s consider that the Outstanding Shares (OS) is still the same as indicated with what’s indicated on OTC Markets for being 338,368,257 shares: https://www.otcmarkets.com/stock/MJTV/security
Then consider below for deriving an Earnings Per Share (EPS) for MJTV as the results following will be rounded:
$15,830,000 Net Income ÷ 338,368,257 shares (MJTV OS) = .047 EPS
Now we must consider a fair Price to Earnings (PE) Ratio to multiply that .047 EPS by. I will consider 15 even though I think the growth rate for the Industry is far higher.
15 PE Ratio x .047 EPS = .71 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 MJTV is only going to sell 1,000,000 COVID-19 Antibody Test Kits in this day and age?
My answer is... No. I believe they are going to sell far more than just 1,000,000 of these FDA approved COVID-19 Antibody Test Kits. So, understand the numbers below for each amount of millions of kits they sell if you were to go back to use the Substitution Property to derive a valuation for MJTV...
1,000,000 Kits Sold = .71 Per Share MJTV Valuation 2,000,000 Kits Sold = $1.42 Per Share MJTV Valuation 3,000,000 Kits Sold = $2.13 Per Share MJTV Valuation 4,000,000 Kits Sold = $2.84 Per Share MJTV Valuation 5,000,000 Kits Sold = $3.55 Per Share MJTV Valuation
And I think one gets the point based on the amount of kits they would sell.
Something else important to note, which keeps MJTV from certain regulatory scrutiny in my opinion, these test kits are not being made to sell individuals. These test kits are in huge demand. MJTV anticipates an even larger demand in preparation for the Vaccines that are now hitting the market. They indicated within their previously released PR that these FDA approved COVID-19 Antibody Test Kits are being made to be sold to Commercial Healthcare Professionals and Professional Medical Purchasers only. They stated that their purchasers are laboratories, physicians, Indian Health Services, clinics, medical offices, hospitals and university health services.
By the clarity that they defined the market for being their clientele, this leads me to think that already some some major deals in the works that I suspect will be closing soon. In my opinion, why else would they enter into the market?
MJTV indicated within their PR that there is a nationwide acute shortage of testing supplies which is what prompted them to enter into the Professional medical testing sector. MJTV also indicated that they have IN STOCK FOR IMMEDIATE DELIVERY Emergency Use Authorized COVID-19 "Coronavirus" IgG/IgM Rapid Test Kits that are FDA approved. Read these posts below to see the MJTV news and the confirmation of their testing kits being FDA approved: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=160102114 https://investorshub.advfn.com/boards/read_msg.aspx?message_id=160131388
Everyone must also please understand that this valuation post is not the gospel. If they never sell one kit, then this post is speculative at best. Use it as a guideline to have to at least somewhat have an idea for what MJTV will be worth if they do start to sell a million or more of these COVID-19 FDA approved testing kits as I do believe that they will.
For those wanting to verify how their COVID-19 Antibody Test Kits are FDA approved, follow the steps below to see 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, Healgen Scientific, 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.
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.
Below is some more Technical Data regarding the COVID-19 IgG/IgM Rapid Test Device that MJTV is selling titled Instructions for Use:
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