It's difficult not to get excited about WNCP, a brand new company with a low O/S and extremely small float of under 100,000 shares. When the shell was taken over the float was only 52,000 shares and the O/S just over 2 million shares. I know from talking with the company that as of Wednesday, the float was only about 57,000 shares. A few more shares were introduced into the float during Friday's run, it appears, but the float is still under 100,000 shares. I don't know the O/S, but I do know that shares were given in exchange for a mine and mining equipment, about 1,200,000 shares, more or less. Let's assume that a few more similar deals are done and the company purchases a few more mines over the next year. Most of the processing plants, however, will be located on mines owned by other companies, many of whom will help pay for the processing plant, while allowing us to keep 1/2 the gold extracted. Awesome!!! Let's also assume that investor's come in with big dollars and purchase a few million restricted shares. Let's also assume that the company sells about 500,000 shares into the float to create liquidity in the stock. And let's assume that insiders and officers are given another 7 million restricted shares for a controlling interest. That might leave us with an O/S of about 15,000,000 shares and a tradeable float no greater than 550,000 shares. Now take a look at the projected revenues. Let's assume 3-5 operations producing $10,000,000 per year or more and a slew of smaller plants doing $2.5 million per year, for total yearly revenues exceeding $75,000,000. Let's also assume a cost of operations at approximately 33% of gross revenues. That would leave us with a company producing $50 million per year in net revenues and a O/S of about 15 million shares. Pure speculation on my part, but I believe the above numbers to be extremely conservative, based on recent company PR's. If you calculate the value of the company at about 15 times annual earnings, you end up with a price per share of about $50 per share. ($50 million x PE ratio of 15 = $75 million, divided by $15 million O/S = $50 per share). Combine that information with the extremely small float and how are you going to keep the stock price from running at least to $10 or $20 per share near term? Please remember that these numbers are only speculation on my part, but I think you get the idea of the potential of this stock. So far, practically no one knows about this company. What do you think might happen once this company get onto everyone's radar screen. Well, starting Monday that is exactly what what will happen. Faxed letters are going out to 20,000 investors for the first time, and WNCP will show up on the Pinksheets.com website as one of the biggest gainers on Friday for stocks selling at over $1.00.
AI
