Aquagold International Inc (AQUI)

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This is worth a repost.


Posted by: Charlatan
In reply to: Blue_Horse_Shoe who wrote msg# 8685 Date:11/30/2007 5:37:00 PM
Post #of 23425

PPS projections..

"AQUAGOLD" branded premium Canadian Spring Water is presently being shipped into China. In 2005, sales of bottled water in China experienced strong growth of 16% (liters) and 15% (RMB/$) to reach 11.2 billion liters and RMB24.1 billion or $3.17 Billion USD in volume and current value terms. The estimates on AQUAGOLD'S China contract alone exceed $500 Million in revenues, however how much in excess will follow in the near future resulting from ongoing marketing activities such as the upcoming trade show in Shanghai, China over the coming few weeks.

Industry statistics for the beverage market is 8.3% margins with an average P/E of 27.4 (Source Yahoo Finance). We can assume since the Company is selling water instead of soft drinks that the margins would be slightly higher so we will use 12%.


$500M/12% margins = $60,000,000 in revenue.

After taxes your looking at about $46,800,000 in profit.

$46.8/700M = .0668 EPS X 27.4 = $1.83 PPS
$46.8/1B = .0468 EPS X 27.4 = $1.28

So we can conclude that if the China contract generates revenues of $500M we are looking at $1.28 - $1.83 PPS projections.