Sunday, August 07, 2011 9:54:51 AM
SMKY DD SUMMARY:
Incredibly Tiny Float and Major News Expected!
** CURRENT PRICE .349, MID-TERM TARGET $1.00+ **
SMOKY MARKET FOODS (SMKY) has gained a lot of new attention recently, due in part to their introduction of a number of their products through a Special Summer Sale at http://www.smokymarketspecials.com. The food is absolutely delicious, so it comes with no surprise that a lot of consumers have now become investors in SMKY.
The timing could not be better to consider an investment in SMKY right now, as several major company events are expected to occur this month:
1. The Company will bring current its filings of the 2010 10K and 2011 first and second quarter 10Qs, which will ultimately lead to an uplisting from the Pink Sheets to the OTCBB.
2. The re-branding of its Smoky Market logo and consumer identity will be completed and the new Smoky Market web site will be introduced for on-line sales of its salmon as the introductory product, with marketing supported by low-cost social networking media. The Company intends to launch its ads on Weight Watchers' web site in both the US and Canada, as well as on other affiliate web sites with national exposure in the very near future, and with capital being provided by private financing structures that include a sale lease-back transaction of its smoker-oven system and the planned offering of its Preferred Stock after revenue has begun.
3. Consummate an agreement with a Canadian fishing group for which it will establish a subsidiary company in Canada for production of (wild caught) smoked fish and worldwide distribution. According to CEO Eddie Feintech, "Our objective with these national and international affiliate distribution channels is to achieve a full utilization of our existing production capacity as soon as possible, which would take SMKY to a level of $30 million annual revenue."
REVENUE POTENTIAL / SHARE VALUATIONS:
It is anticipated that SMKY's existing half-sized oven will likely be at full capacity following the above events, which (as stated) can produce an estimated $30M in annual revenue, resulting in an estimated EPS in the range of .05 to .08. If a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $1.25 to $2.00 per share!
With existing capacity expected to be reached immediately, an additional full-sized oven is planned, which would be capable of producing an additional $60-70M in annual revenue, and should be up and running near the end of 2011 or beginning of 2012. With this additional oven capacity, SMKY would then be able to produce $90-100M in annual revenue, resulting in an estimated EPS in the range of .13 to .24. Once again, if a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $3.25 to $6.00 per share!
The above share valuations may seem very high for a stock currently trading near in the .30s, but the potential is very real given the millions of consumers that will soon be introduced to Smoky Market Foods through Weight Watchers in both the U.S. and Canada. Additionally, the thin share structure for SMKY has contributed to a rise in share price with no evidence of any major resistance along the way. The float of 13.4M shares consists of 7.8M shares controlled by original seed investors and 5.6M shares held by others, most of which seem to be long-term investors with same dream as the company and its original seed investors.
Because of this very unique situation with the tradable public float, many expect the upcoming news to generate enough new buying volume to continue the rise in share price that has been ongoing since the beginning of the year, and possibly even approach the first stage of share valuation of $1.25 to $2.00 per share.
Daily Chart:
Given the tiny float and strong holding of shareholders, SMKY's dips are both infrequent and short-lived. With the many announcements and filings expected in the weeks ahead, an entry in the .25-.30 range may be the best opportunity before the price moves to a higher range:
Weekly Chart:
As a true long-term investment, you see no sign of the day to day swings on the weekly chart. The stock has been in a solid long-term uptrend since the beginning of the year, and shows no signs of ending this trend:
Please visit the SMKY Board on IHUB for more information: http://investorshub.advfn.com/boards/board.aspx?board_id=10466
Incredibly Tiny Float and Major News Expected!
** CURRENT PRICE .349, MID-TERM TARGET $1.00+ **
SMOKY MARKET FOODS (SMKY) has gained a lot of new attention recently, due in part to their introduction of a number of their products through a Special Summer Sale at http://www.smokymarketspecials.com. The food is absolutely delicious, so it comes with no surprise that a lot of consumers have now become investors in SMKY.
The timing could not be better to consider an investment in SMKY right now, as several major company events are expected to occur this month:
1. The Company will bring current its filings of the 2010 10K and 2011 first and second quarter 10Qs, which will ultimately lead to an uplisting from the Pink Sheets to the OTCBB.
2. The re-branding of its Smoky Market logo and consumer identity will be completed and the new Smoky Market web site will be introduced for on-line sales of its salmon as the introductory product, with marketing supported by low-cost social networking media. The Company intends to launch its ads on Weight Watchers' web site in both the US and Canada, as well as on other affiliate web sites with national exposure in the very near future, and with capital being provided by private financing structures that include a sale lease-back transaction of its smoker-oven system and the planned offering of its Preferred Stock after revenue has begun.
3. Consummate an agreement with a Canadian fishing group for which it will establish a subsidiary company in Canada for production of (wild caught) smoked fish and worldwide distribution. According to CEO Eddie Feintech, "Our objective with these national and international affiliate distribution channels is to achieve a full utilization of our existing production capacity as soon as possible, which would take SMKY to a level of $30 million annual revenue."
REVENUE POTENTIAL / SHARE VALUATIONS:
It is anticipated that SMKY's existing half-sized oven will likely be at full capacity following the above events, which (as stated) can produce an estimated $30M in annual revenue, resulting in an estimated EPS in the range of .05 to .08. If a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $1.25 to $2.00 per share!
With existing capacity expected to be reached immediately, an additional full-sized oven is planned, which would be capable of producing an additional $60-70M in annual revenue, and should be up and running near the end of 2011 or beginning of 2012. With this additional oven capacity, SMKY would then be able to produce $90-100M in annual revenue, resulting in an estimated EPS in the range of .13 to .24. Once again, if a conservative P/E ratio of 25 is applied, SMKY would be trading in the range of $3.25 to $6.00 per share!
The above share valuations may seem very high for a stock currently trading near in the .30s, but the potential is very real given the millions of consumers that will soon be introduced to Smoky Market Foods through Weight Watchers in both the U.S. and Canada. Additionally, the thin share structure for SMKY has contributed to a rise in share price with no evidence of any major resistance along the way. The float of 13.4M shares consists of 7.8M shares controlled by original seed investors and 5.6M shares held by others, most of which seem to be long-term investors with same dream as the company and its original seed investors.
Because of this very unique situation with the tradable public float, many expect the upcoming news to generate enough new buying volume to continue the rise in share price that has been ongoing since the beginning of the year, and possibly even approach the first stage of share valuation of $1.25 to $2.00 per share.
Daily Chart:
Given the tiny float and strong holding of shareholders, SMKY's dips are both infrequent and short-lived. With the many announcements and filings expected in the weeks ahead, an entry in the .25-.30 range may be the best opportunity before the price moves to a higher range:
Weekly Chart:
As a true long-term investment, you see no sign of the day to day swings on the weekly chart. The stock has been in a solid long-term uptrend since the beginning of the year, and shows no signs of ending this trend:
Please visit the SMKY Board on IHUB for more information: http://investorshub.advfn.com/boards/board.aspx?board_id=10466
My posts are my personal opinions and not recommendations to buy or sell securities. You are responsible for your own investment decisions.
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