Why I have set $10.00 per share as my target.
I know a lot of people will sell at .33 or .50 or $1.00 or $2.00 ... I don't blame anyone for doing (I will probably sell a small amount) but I plan to hold for the homerun. Here is my reasoning in 2 sections:
Section 1 - As many here have already noted the management of this company is very careful to do everything right. They don't want to over promise or pump and dump. They want a proven technology that drives the success of the company. They are close but still have a few tweaks.
Very low float
No Debt
Well Respected management in the appropriate fields
Demand/Demand/Demand
Potential demand in multiple additional industries
Patent holder
Privately funded
Etc.
Section 2
Did I say demand? Read the following:
Sought after Worldwide "Cultured Diamond" productions currently flowing into the gem and jewelry industry estimated by Mr. Prentice is only 20,000 carats or less annually, which is a very small fraction indeed, considering the demand for Cultured is easily 10% of the world’s 150+ million carats of natural gem quality rough Natural diamonds mined today.
In other words - A market of 15 million carats is currently only seeing 20,000 filled. There are only 3 or 4 cultured diamond companies producing cultured diamonds now. The fastest process takes 3 days and the diamond is limited to 3 carats in size. CTDT takes seconds and produces any size.
Current market cap is 8 million. A market cap of 700,000 million is a very conservative number (I believe). With 730 million shares outstanding that is approximately $10.00 per share.
The patents alone could be worth more than that figure. We don't have any EPS to work from but this company will have a very high PE ratio as well.
Every once in while "the opportunity of a lifetime" presents itself. This could be one of those. While I think $10.00 is a reasonable target price I do believe it can go significantly higher. GLT all.
