Implications of $200 Million in Revs
Should Freestone ever attain $200 million of annual gross sales, and should they never increase the outstanding share count beyond the present 62.74 million, the gross per-share earnings would be $3.18. At a gross price-to-earning ratio of 10:1 (it would more likely approach or exceed 15:1), an FSNR share would then retail at about $31. At a 15:1 P/E ratio, the general share price would be about $47.
How much of any of such earnings might drop down into per-share dividends is unknown; but if only a third of the EBITDA (before taxes, expenses, etc.) revenues flowed as dividends to shareholders, that’s an annual dividend of about a buck a share.
Of course, such rewarding numbers depend on two factors: A) annual gross revs of $200 million, and B) an outstanding share count no higher than present 62.74 million.
Frankly, I’d be happy with annual revs of one-tenth that, at $20 million, yielding, say, a dividend of $0.10 and share price of just $3.
We await water sales figures from the present well and load-out facility; wherefrom we can extrapolate numbers to include additional wells and load-out facilities, should those come into operation.
–Faconer66a
(And no, don’t anyone try to claim that Falconer has projected or predicted either $200 or even $20 million of revenues. I’ve done nothing of the kind. I’ve merely calculated the “if” results. The real revenue numbers will reveal themselves in coming quarters. Those should be the numbers diligent investors should work from.)
