Ultrack Systems by the Numbers. I ran some numbers on MJLB. Would love to hear from someone who has this type of analysis. MJLB has 295,106,643 shares outstanding and the last we heard was that the three months ended June 30, 2021 revenue was $162,055 for the quarter. The company has two issues of preferred shares, one of which is 1,000,000 shares that essentially make the common unable to control the company at all by voting, and the other...I'm not sure. The other must be highly lucrative to the owner somehow because it only converts into 1,000 shares, which seems to be some sort of disincentive to convert. At any rate, the net income doesn't simply flow to the common shareholders, so there's a disadvantage in the capital structure to start with. That may make the multipliers I use later too high. But, in round numbers, at that much quarterly revenue the company should make something like $650,000 of revenue per year right now, give or take. When the two certifications for the two products do come through the company has the ability to start making more revenue, but that revenue won't be instantaneous. Lets say the revenue eventually gets to $10,000,000, easily tenfold the current revenue. Divide that by the 295,106,643 shares and it's about $0.034 per share. A quick net search indicates a reasonable price-to-sales multiplier for tech companies is 4x to 6x, so I'll pick 5x. 5 x $0.034 = $0.17 per share value. But that's only if and when the company's revenues can make it to $10,000,000, which will probably be counted in years. To justify the current $0.037 share price we can work the math backward, indicating that at the current share price the company should have about $2,200,000 of revenue right now, which it doesn't. Using the same math process, the current revenue of $650,000 should value the shares just over $0.01 per share, but the shares are still in a long-term reset from the penny stock craze of earlier last year. Long periods of slow price migration and short periods of high volatility are both very common in publicly traded markets for low-volume penny stocks like this one. What I'm saying is there isn't nearly as much upside in this stock, and especially not nearly as quickly, as many here seem to believe. It could be a multi-year hold, taking on excess risk, with much better options available elsewhere, in the hopes of getting between 2x and 5x return on capital invested.
AI
