Phoenix Rising Companies Inc (PRCX)

[trademax42]

The current PPS and MC are out of sink with its fundamentals. The 52 week high was .096 and the company had revenues of $13 million in 2021 and assets of $19 million as per Yahoo Finance.

https://ca.finance.yahoo.com/quote/PRCX/financials?p=PRCX

https://ca.finance.yahoo.com/quote/PRCX/balance-sheet?p=PRCX

Its an OTC QB tiered ticker, not just a stinky pinky ticker. This is also an SEC reporting company.

Applying two approaches to estimate PPS

1. Revenue approach to estimate PPS:

MC is normally some multiple of revenues, say 5X revenues which makes it potentially a $65 million company. The current MC is about $3 million. That should conservatively translate to a minimum of 15X from this level. This not considering the definitive MOU expected to close by end of the month.

Then 15X from current PPS = .0084X15 = .126 cents

2. Net income and PE ratio approach to estimate PPS:

the company had a net income of $10.35 million dollars.

https://ca.finance.yahoo.com/quote/PRCX/financials?p=PRCX

Using the company profile from Yahoo Finance (assuming its current):

Phoenix Rising Companies, through its subsidiaries, engages in trading in oil, gas, and lubricant products in the People's Republic of China. The company was formerly known as Resort Savers, Inc. and changed its name to Phoenix Rising Companies in May 2020. Phoenix Rising Companies was founded in 2012 and is based in Cedartown, Georgia.

https://ca.finance.yahoo.com/quote/PRCX/profile?p=PRCX

The current PE ratio in oil/gas sector = 34.66 as per the following link:

https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

To estimate PPS = ($10.35M/OS 348M)X34.66 = $1.03

I would be happy with a PPS anywhere between .126 cents and $1.03. The current MC is out of sink with its fundamentals.

Take it for what its worth.

Best to all.

$PRCX