How high could the price of ORRV realistically go?
Conservatively speaking, a price of 20 x earnings is generally considered realistic for almost any stock. Today, however, it is not unheard of for a stock to sell for 50 x earnings at it’s peaks. So, what might ORRV be able to show for earnings on the 5 cluster shipwreck valued (based upon manifest information) at a minimum of $2,000,000,000 (today’s dollars)?
Let’s do a little math. The cargo is in International waters so, they don’t have to share anything with a country but, ORRV is doing the right thing and attempting to locate any ship owners or merchants with an interest in those cargoes to work out a settlement with them. I have no idea what a fair split might be but if we can assume that ORRV could manage to show a profit of just 10% of the total value of the salvaged cargo (and if anyone knows what kind of profit they turned on previous finds (because I don’t) please comment and update my figures). But, at a 10% profit, then a $200,000,000 profit with 817,937,177 shares outstanding would be earnings of $0.24/share. At 20 x earnings that would support a stock price of $4.80. With high volatility in price swings and discounts up to 50 x earnings, peak prices of the stock could go as high as $12.00 just based upon the 5 shipwreck cluster alone (not including the Philippines).
This is of course purely speculation on my part as to where the stock could be heading but, if the figures I based my math on are even close to being correct, everyone who has a million or more shares at current prices will be set for life if the invest the proceeds wisely.
Just some food for thought and any comments on any of my numbers or calculations is highly desired and appreciated.
