Aqua Power Systems Inc (APSI)

[stervc]

TimeIsFading, with stocks having incredibly huge moves...

In my over 30 years of investing, I have seen a lot of stocks that have had some incredibly huge moves. Most investors would not have believed such unless they would have witnessed it themselves. Some of the tickers I remember while some I don't. Sometimes you have to first "believe it" before "seeing it" as something that could actually happen instead of thinking that you must first "see it" happen before you will "believe it" as something that can happen. I'm not afraid of being wrong and the bitter remarks that usually follow because of such, so I "believe it" with what can happen here with APSI before ever "seeing it" happen possibly as of yet.

NBLD going from .03 to $3.72 per share is definitely an incredible move and a fair example that you posted. Even though I'm not familiar with NBLD, I do believe that APSI has the "potential" to go much higher. Years ago back in the early 2000s I saw OTCA go from .50 to $100.00 per share in four days just based on its "potential" without having a fraction of what I believe APSI will have if they close on their scheduled acquisition. I was in VCSY back in early 2000s when they announced doing a 20-1 Forward Split on Jan 28, 2000. They announced that their Date of Record for their Forward Split was Feb 7, 2000:
http://www.vcsy.com/press%20releases/021400.html

On Feb 23, 2000, VCSY had hit a high of $6.125 per share post-split for the day with plenty of volume. At that price, that’s equivalent to $122.50 per share pre-split price that’s derived by multiplying $6.125 per share x 20 Forward Split Ratio. Still, APSI has more potential in my opinion. I can come up with lots of other examples, but I think you get the point that there is no telling how high APSI could trade just based off of "potential" alone.

I'm a little different. Because of my experiences that I have either experienced or witnessed within the market, I'm not afraid to indicate or state the max potential that could exist in a stock to have a framework to go by if a stock actually achieves what they are claiming to achieve. If they don't, then people should know what not to expect. For those choosing to be conservative by not believing it until they see it, I respect such. I say to them that I understand why you stay in your lane, but understand why I stay in my lane. I'm saying this because what I'm about to post next regarding APSI might be crazy to some, but not to me "IF" the stars properly align. Again, I'm not afraid of being wrong for thinking it and believing it "IF" such "potential" doesn't manifest into a reality.

Ok, within this post below, I explained how APSI has the "potential" to trade anywhere from $3.00 to $37.00+ per share if those key variables as I had explained properly align after their acquisition of Tradition Transportation Group, Inc. below:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170426485

I have to say that I believe that those APSI valuation numbers have the "potential" to be a tad bit higher. Before reading my thoughts justifying why and thinking that this is just another one of Sterling's valuation posts that never happens, understand that me posting my thoughts doesn't mean that such numbers for share value will be reached. It will be up to the company first completing the acquisition, then the variables being in the area of which I had indicated, and then the market realizing such for existing by its actions of buying up to such potential.

The acquisition is generated over the $87 Million in Revenues that was stated to have existed for its 2021 annual financials per the APSI tweet below:

https://twitter.com/inc_apsi/status/1578439566033178624?cxt=HHwWgMCijYSb3-crAAAA

In my opinion, I think the Revenues are much higher for two reasons. One is because of 2021 was during some COVID-19 stricken times to where business was down all over. I'm willing to guess that there is a minimum of 10% increase in Revenues, which would be an additional $8,700,000 in Revenues, for what's being generated now. Second, I saw where it was posted that there was an additional acquisition by Tradition Transportation Group, Inc. of Karr Transportation bringing in an additional amount of $14,000,000 in Revenues courtesy of Roofus:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170477548

That's an additional $22,700,000 in Revenues on top of the previously existing $87,000,000 in Revenues. That brings the total Revenues to at least $109,700,000 for 2022 in my opinion.

Now let's use the "Substitution Property" to substitute out the $87 Million with the $109.7 Million in Revenues in the example I provided below:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170426485

Revenues = $109,700,000
Net Profit Margin = 19%
P/E Ratio = 39.29 for Trucking (Logistics/Transportation) Industry
APSI OS = 17,204,180 shares

Important to note: Since it is believed that Preferred Shares are being used to complete the acquisition, I will presume that the OS will remain constant. There is a chance that some warrants might be issued so it could slightly change. If it changes at any time with any new amount, apply the Substitution Property accordingly. I suspect any change will not be huge to affect the valuation of the deal coming in.

Revenues x Net Profit Margin = Net Income
Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
Earnings Per Share (EPS) x Price to Earnings (P/E) Ratio = Share Price Valuation

$109,700,000 x .19 = $20,843,000
$20,843,000 ÷ 17,204,180 shares (OS) = $1.21 EPS
$1.21 EPS x 39.29 P/E Ratio = $47.54 per share

This means that if all of the variables exist as I had indicated above, APSI will be fundamentally worth $47.54 per share. This means that even if they double their OS post acquisition, APSI will be fundamentally worth $23.77 per share. Again, the purpose of this valuation post is to show where APSI should fundamentally trade if they achieve what they are claiming to achieve and those key variables existing as I had indicated. If they don’t, then don’t expect this valuation post to manifest into a reality. Remember, if they achieve something smaller or greater than what they have claimed to do, then use the “Substitution Property” accordingly as I had done in the example above to substitute out any variables as needed.

v/r
Sterling