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Re: snow post# 69488

Friday, 01/05/2024 7:58:28 AM

Friday, January 05, 2024 7:58:28 AM

Post# of 81665
snow, with your SPZI valuation with the "Substitution Property"...

No problem and sorry for taking so long to respond. Just because I post it doesn't mean that such are how things are going to be. Any valuation I have ever posted and will post is nothing more than speculation. That's with anyone posting on any of these forums or message boards. I urge everyone to use the "Substitution Property" to substitute out any variable they desire to make a valuation as conservative as they like. Me and my thoughts are definitely not the gospel. I can explain this further for you with using the "Substitution Property" for SPZI with the 2% Net Profit Margin that you have suggested. The topic of conversation was that we know that there is a minimum of $600 Million coming in contracts based on what was indicated over with what NHMD filed with the SEC and that previous situation. If we consider using the 2% Net Profit Margin, that still makes SPZI undervalued based on what we know. Observe below with using 2% as the Net Profit Margin for a SPZI valuation as you have suggested...

$600,000,000 Revenues x 2% Net Profit Margin = $12,000,000 Net Income

$12,000,000 Net Income ÷ 5,500,000,000 (OS) = .0021 EPS

.0021 EPS x 15 PE Ratio = .0315 per share for SPZI Valuation

Here's the deal though as to why that .0315 per share valuation could be still undervalued. Go to the link below and you will see that the PE Ratio for the Food Processing Industry is not 15 but instead it is 113.24 for the "expected growth rate" for the Food Processing Industry derived from a total of 92 firms within that particular Industry:
https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

That means that the formula for deriving a valuation for SPZI should look more like this confirming a share price .237 per share from a 2% Net Profit Margin... observe...

.0021 EPS x 113.24 PE Ratio = .237 per share for SPZI Valuation

Look, I'm not saying that SPZI should be sitting at .237 per share right now today. I am saying that based on what we know what was filed in 8-Ks with the SEC when they were going to go into NHMD, the potential exists to justify them to be trading in that area at some time in the future if they deliver on their business objectives. And that valuation does not include their LNG and EB-5 deals that are still coming to the table to be revealed. The company stated in their last PR... For real estate and LNG development, we are facilitating an alternative funding source and mechanism under the EB-5 program. Stay tuned for major EB-5 announcements and significant LNG announcements.

I suggest all to use the "Substitution Property" to play around with substituting out whatever numbers to one's desires. One thing for sure that won't change are the formulas that were used to derive the fundamental valuation. Those are the market standards within any stock market.

v/r
Sterling
Bullish
Bullish

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