BioNitrogen Holdings Corp. (BIONQ)

[Dave1865]

Thanks for your review. I will raise a couple of points for discussion/clarification:

If we assume $300 million in revenue, the cost is assumed to be $150 per ton or for 750,000 tons = $112,500,000. Therefore the net income is $187,500,000. This is the earnings figure to use. I do not believe you should use Gross sales as earnings.

Therefore, if I am correct, that would reduce your targeted share price with a P/E ratio of 40 to:

Earnings per share. = 187500000/500 million shares= .375

P/E = 15

Note: we really need to learn more about the United Suppliers contract with BION. The press release said it had a floor of $250 per ton. If that is the actual rate paid to BION than the P/E would look to be under 10.

Any thoughts?