You're right for once, I missed the warrants. As I said in my post, it wasn't ment to give a firm target price, only a rational range of potential targets based on the assumptions/estimates laid out in their PR's and financials. If it makes you feel better, here are the revised estimates with the warrants included.
According to the last 10-Q, as of April 30, 2021 there were 3,675,000 warrant shares outstanding. Making the appropriate adjustments to my OBTX post # 529...
I used the the common shares last reported on July 2, 2021 of 7,459,126 shares. There were subsequent Form 4-K's listing sales of shares to Hawkins on July 19 and 23. I added up the total potential common shares and they came to 5,200,000 once fully diluted. However, I'm not entirely certain that these weren't included on the 10-Q and just not yet reported. In any event, if we add these shares to the total fully diluted shares we get...
21,459,126 shares + 5,200,000 shares = 26,659,126 shares
If we then add outstanding warrants as of April 30, 2021 we get
26,659,126 shares + 3,675,000 = 30,334,126 fully diluted shares
...Re-doing the calculations with these new share numbers we get...
$81,645,000 Earnings / 30,334,126 Outstanding Shares (OS) = $2.69
Earnings Per Share (EPS)
...The previous estimate was $3.06 /share but was based largely on splitting the OBTX PR estimate of $50 to $100 million earnings from PulseChain and using $75 million. Consequently, the accuracy of the range will be more dependent on the accuracy of the earnings estimate than the relatively small difference in the diluted share count. Nevertheless, here's what we get with the new numbers, again using the
Stern School of Business PE ratio's as in my post # 525...
$2.69 EPS x 19.35 = $52.05/share pps to
$2.69 EPS x 305.13 = $820.80/share pps
Using Stern's average PE ratio across all industries of 93.39x we get...
$2.69 EPS x 93.39 = $251.22
Consequently, based on these assumptions, a price target in the range of roughly $52 to $820 is rational for OBTX. This doesn't mean that the company will hit either of these targets, only that they are possible if all the assumptions are met. Even with the new values. Everything BlockChain is still severely undervalued.
