Bravo Brands Inc (fka BRVO)

[starfire]

If CCE & BRVO execute the plan well, then this is going to be a PPS between $8 & $24. We will know by the end of this year if they are executing well. I did a discounted cash flow analysis and the discounted NPV EPS comes out to be between $2 and $6 on a fully diluted basis of 300M shares. Multiply that by P/E multiple of 4.

My assumptions are:

1. 2010 revenue of $1B - $2B
2. Cost of capital = Cost of Equity = 15%
3. O/S 300M shares
4. Revenue Growth beyond 2010 = 5%

In reality there is going to be a float of well below 150M shares. So the demand will be chasing the float. Look out for spikes!!! GLTA.