All American Pet Company Inc (AAPT)

[Leirum]

Outstanding shares per Nov. 14, 2012 695 Mio
Authorized: 1 Billion

So we know where the Cap is: 1 Billion. If they would increase it, one would see a filing, however the way I see it, they won't need this to do.

I assume as of today, the O/S could be up at around 800 Mio due to a placement, but we will know when the filing comes out, the exact amount. But the proceeds of the placement should give the company enough momentum to increase production and invest in necessary public relation with ref. to their products. This company will not need much further dilution, because once you get the velocity of the products there are other ways and means to get pre financed. Conclusion: The present authorized won't have to be increased as far as I am concerned - but step by step - we will hear more and within 6 months certainly get a first impression of sales.
Always keep in mind: Sales of $ 200.-- per month in 40.000 stores would already mean 96 Mio. With 12.5 Ebita this would translate into a net profit of 12 Mio times 15 = 180 Mio Cap divided by 800 Mio shs. = 0.22 stock price.

But to satisfy as well the pessimists: $ 100.-- sales per month in 20.000 stores would mean $ 24 Mio.Revenues. With an Ebita margin of 12.5 this would translate into $ 3.6 net profit times 15 = $ 54 Mio divided by 800 Mio shs. = 0.065 stock price.