Evcarco, Inc.(fka EVCA)

[VortMax]

Used Hybrid Market ~$578M/year And Growing

1) 254M registered passenger vehicles in the U.S.

2) 40M passenger vehicles or 15.8% are sold as used/year in the U.S.

3) Of the 254M registered passenger vehicles, ~2.5M are hybrids, of which ~34,000 are sold as used/year or about 95/day

4) The average used hybrid sells for ~$17,000, so $17,000 x 34,000 cars = $578M

5) The new hybrid market is expected to grow from 350k units year now, to 900k units/year in 2015, and possibly 1.8M units/year in 2020. This would about double the used hybrid market by 2015 and quadruple it in 2020 to a $2B/year business.

In conclusion, the used hybrid market is roughly 95 units/day right now, and will likely become about 200 units day in 2015 and 400 units/day in 2020. What market share can EVCA get? If they can get 10% market share, that's about 10 units/day right now, and would grow to 40 units day in 2020. Thats a yearly revenue of $62M if they can tap into the current used hybrid market and $248M in 2020. EVCA plans to open 4 dealerships within 12 months, could they do 10 units/day or roughly 2.5 units/day at each store? I say yes. That is a yearly revenue run rate of $62M/year. Even if the 4 stores come in at half of that, and the revenue run rate is $31M/year just from this segment, that is still good for about 10% net profit or $3M, use PE 20 get EVCA value of $60M then. Of course, the PE would likely be higher due to rapid growth, maybe a market cap of $100M or so. Keep in mind, while used hybrids will be their main source of revenue for several years, its not the only revenue they will have.

http://www.hybridcars.com/news/expert-expect-more-100-hybrid-and-ev-models-us-2015-28579.html