This is my best go at it, but I am not an expert. I will try to get someone who knows a little more about all of this to take a look at my calculations. Either way it is all purely based on estimates. I don't think Edward was taking into account net profit in his email, and I obviously have no clue what the net profit margin % is or what PE ratio would be applied to this stock. So without any financial statements I can't get a good feel for this stock yet.
I can say, that I don't think we will hit the $25 million by September and maybe not by the end of the year, but by September we may be half way there for $12.5 million. If anyone has any disputes, please let me know, like I said, I am no expert here. Still learning this stuff. Of course these numbers also exclude hype and demand. One other thing I am uncertain about is yearly service and maintenance fees for our company. I haven't seen Edward mention these anywhere, but these would definately bring up the net profit margin to a higher %. Also, the more we sell, the greater the profit margin due to not as much of an increase in S&G costs. I haven't factored any of this into my calculations below.
$12,500,000 x 15% profit margin = $1,875,000
Outstanding shares = 50,000,000
EPS: $1,875,000/50,000,000 = .0375/share
Assuming a PE ratio of 25 unsure (10-40 market range)
.0375 * 25 = $0.9375
$12,500,000 x 20% profit margin = $2,500,000
Outstanding shares = 50,000,000
EPS: $2,500,000/50,000,000 = .05/share
Assuming a PE ratio of 25 (10-40 market range)
.05 * 25 = $1.25
Assuming the $25,000,000 at end of year.
$25,000,000 x 20% profit margin = $5,000,000
Outstanding shares = 50,000,000
EPS: $5,000,000/50,000,000 = .10/share
Assuming a PE ratio of 25 (10-40 market range)
.10 * 25 = $2.50
"To Give Anything Less Than Your Best, Is To Sacrifice the Gift." - Steve Prefontaine
