Grapefruit USA Inc (GPFT)

[BennyJ]

Rumor about Buyout? IMGG - GE, Toshiba ...
I have owned this stock since Feb, 2006 and have listened to every conference call and read every post on Yahoo and Ihub for four years. I believe this is at least a $7.00 stock - below is my analysis. My guess is that GE will try to buy the company early in the game for about $4.00 to $5.00 per share. I hope Dean and other shareholders resist.

Let me try to do a rational valuation. With their current facility in Burbank, Imaging3 can produce 10 per month. They have also had talks with people abroad that can produce more since the components are off-the-shelf. They also have capital lined up with little or no dilution for production after approval. Let's say they can produce 40 per month (I think 100+ per month is doable). Demand is much, much more(They already have over few hundreds of order) but let's stay conservative. 40 per month=480 per year. 480 x $550,000 (let's not even count the maintenance) = $264 mil of sales.
Gross profit is 50% (See other posts much earlier and watch earlier conference where Dean said this). $198 mil * 50% = $132 mil gross profit per year. There are 375 mil shares. 132/375 = $0.35 gross profit per share. With demand exceeding supply then P/E ratio will probably be 50+ but, again, let's be conservative and use P/E ratio of 20.

20 x .35 = $7.00 price