Marani Brands Inc. (MRIB)

[stervc]

MRIB**Two Actual Valuations to Seriously Consider…

I am going to explain through logical deduction how MRIB should fundamentally be trading as a minimum in the .125 to .362 per share ranges based on this recent MRIB news of MRIB obtaining a $40 Million Distribution Contract as indicated below:
http://ih.advfn.com/p.php?pid=nmona&article=60125232

Before I explain such valuation, first, I think it is important to talk about the Outstanding Shares (OS). I personally called the MRIB Transfer Agent (TA) a few times last week and confirmed that the MRIB share structure is as indicated below as of:

Authorized Shares (AS) = 1,000,000,000 shares
Outstanding Shares (OS) = 408,259,529 shares
Restricted Shares = 137,450,065 shares
Float Shares = 270,809,464 shares

Also, I called the MRIB Transfer Agent again today and verified that the numbers are still the same. That’s a slight increase from what is listed on the OTC Markets. I was guessing that maybe the slight increase came from shares that were used to eliminate the $1 Million Debt that the CEO, Margrit, mentioned in her interview or it could have been a slight mix up in the transferring of their Transfer Agent as explained below courtesy of the poster who goes by the name of only money below:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94406984

Regardless, it is what it is. Since the company had been out from operations for quite a few years, I can forgive them of this slight mix up… especially with this recent contract and as long as they continue bringing in such contracts as such has been confirmed. I wanted to wait to release this post that I spoke of a few days back because I wanted to make sure that the OS was going to remain the same over the past few days to eliminate thoughts of any dilution concerns. The OS is still the same today as it was from last week which is why I will use the 408,259,529 shares amount as the OS to derive these valuations. There will be two primary parts showing justification for two types of valuation considerations; b].125 and .362 per share. Let’s get started.



Previously confirmed, MRIB would trade within the Beverages - Wineries & Distillers Industry where the Net Profit Margin as of Nov 22, 2013 is confirmed to be 21.70% with a Price to Earnings Ratio (P/E) of 29.70 as confirmed below to help us derive an Earnings Per Share (EPS):

http://biz.yahoo.com/p/347conameu.html


This means below from considering their $40 Million Distribution Contract over the course of 5 years…

$40,000,000 x .217 Net Profit Margin = $8,680,000 Net Income

$8,680,000 ÷ 408,259,529 OS = .0212 EPS

.0212 EPS x 29.70 P/E Ratio = .629 Per Share MRIB Valuation

Over the course of 5 years is what the $40 Million Contract is for so we must divide the .629 by 5 to get the annual per year value for the next 5 years for MRIB just from this one contract as indicated below:

.629 ÷ 5 years = .125 per share

This means that based on this $40 Million Contract alone, MRIB should exist to trade somewhere in the area of .125 per share as a bottom which confirms that MRIB is still significantly undervalued here at these levels.

However, the post below, courtesy of buybio2, elaborates about how this $40 Million Contract only is accounting for 7,300 cases per month of Marani Vodka:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94319734

To keep the math simple, I’m going to average down on the cases and presume that the 2 containers mentioned within the PR represents 7,000 cases with each containing having 3,500 cases and with each case having 6 bottles at $15.99 per bottle from what I have confirmed from doing some personal DD. The $40 Million Distribution Contract would be derived from the known numbers as indicated below:

1 Container = 3,500 Cases
2 Containers = 7,000 Cases
7,000 cases x 6 bottles per case = 42,000 Bottles
42,000 x 15.99 per bottle = $671,580 Per Month
$671,580 Per Month x 12 months = $8,058,960 Per Year
$8,058,960 x 5 years (60 months) = $40,294,800 for the 5 Year Contract

However, within one of the earlier PRs and within the CEO interview below, the CEO has informed us that MRIB has confirmed the increase to a ”minimum” of 20,000 cases of product a month:
http://ih.advfn.com/p.php?pid=nmona&article=60000459
http://youtu.be/uM_PLu7GSmA

20,000 cases per month x 12 = 240,000 Cases Per year

This means that if the company has only informed us of a $40 Million contract that accounts for ”only” 7,000 cases out of the 20,000 cases per month or 240,000 per year), then what’s the total amount of contractual value remaining that justifies the balance of 20,000 cases per month minus the 7,000 cases for the Brazil Distribution Contract? Well, let’s figure this out. There are a few ways to figure this out, but I will choose the logic below:

20,000 cases per moth - 7,000 cases per month = 13,000 cases per month

7,000 ÷ 20,000 = .35 or 35%

This means that the 7,000 cases per month represent 35% of the contractual value that is currently existing with MRIB.

So, if 7,000 cases per month represents 35% of the $40 Million Distribution Contract over 5 years which equates to $8,058,960 per year, then 13,000 cases represents the other 65% of contractual value remaining in MRIB. Remember, from the formula I used above, there are 6 bottles per case at the price of $15.99 per bottle. So let’s derive the per year amount for the remaining 13,000 cases per year to be distributed:

13,000 cases per month x 6 bottles per case = 78,000 bottles
78,000 bottle x $15.99 per bottle = $1,247,220 per month
$1,247,220 x 12 Months = $14,966,640 per year

So, here is what we now know…

7,000 cases per year = $8,058,960 per year
13,000 cases per year = $14,966,640 per year

20,000 cases per month = $23,025,600 per year

The MRIB CEO confirmed in an interview and in a PR that MRIB has begun production to fulfil 20,000 cases per month. This means that we can expect from the 20,000 cases per month annual revenues in the amount of $23,025,600 per year.

This means that right now, MRIB is in production generating 20,000 cases per month to fulfil a total of $23,025,600 per year in Distribution Contracts for the company. This means that ”technically speaking” with this additional derived information, MRIB should be trading at…

$23,025,600 x .217 Net Profit Margin = $4,996,555 Net Income

$4,996,555 ÷ 408,259,529 OS = .0122 EPS

.0122 EPS x 29.70 P/E Ratio = .362 Per Share MRIB Valuation

So I guess until the next contract is announced, MRIB should be trading in the .125 per share area. However, because of what the CEO has already hinted towards in referring to the increase in production to 20,000 cases per month, I think it’s very evident that more Distribution Contracts are coming to justify the 20,000 cases per month worth of production. This means that MRIB is fundamentally worth the projected value of .362 per share. I have the utmost confidence and belief in MRIB and its management so I truly believe that production will continue to commence as the company has planned which is how they have been informing us. For changes to any of the variables in the future, simply use the Substitution Property accordingly to derive the value of where MRIB should fundamentally trade.



Again, as I believe that it is important to reiterate…

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=93647204
Good to know from MRIB Filing…

I must admit that this is still good to know from the recent MRIB filing of this huge greater than 5% owner:

http://www.otcmarkets.com/financialReportViewer?symbol=MRIB&id=112575
Entities owning in excess of 5%

RBC Dexia Investor Services Bank S.A. Luxembourg
c/o Bank Julius Baer & Co. Ltd. Attn: Christian Munger, Hohlstrasse 602, , CH-8010, Zurich, Switzerland

This further justifies the thoughts previously posted below:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=92577657

MIC, with this Significant MRIB DD…

There are a few important things to take notice of with how this relates to MRIB. First, I think we need to understand that the SCHEDULE 13G for the ownership of 21,744,440 shares of common stock of MRIB filed by GAM Holding Ltd. is a little deeper to understand than what was indicated.

Before I explain the importance of this ownership of MRIB shares a little further, I think it’s important to know that we are talking about multi-billion dollar companies here and if a multi-billion dollar company had previously seen enough in MRIB’s operations to own such a huge position of millions of shares back when MRIB was publicly operational, then if MRIB can confirm that it is again becoming operational once again, then I think we all should immediately see that it will then definitely be worth learning why a multi-billion dollar company would want to own so many millions of shares in MRIB. Also, I think that it’s safe to presume that if the position of shares would have changed at any time, an amended Schedule 13G would have been filed. Still, it’s important to know what such a company thought about MRIB back when MRIB was operational. Something very huge could be upon us.

To further explain about this huge ownership MRIB shares, the actual 21,744,440 shares are managed by Swiss & Global Asset Management Ltd. ("Swiss & Global") which is a wholly owned subsidiary of GAM Holding Ltd. as indicated within the SCHEDULE 13G filed below:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8397588

To be even more technical to breakdown who the 21,744,440 shares of MRIB belongs to, although managed by Swiss & Global Asset Management Ltd. ("Swiss & Global"), it’s only one investment fund, JB Multistock Black Sea Fund, which is a sub-fund of Julius Baer Multistock SICAV. All of this is under Item 7. titled Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company or Control Person within the SCHEDULE 13G filed below:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8397588


https://www.swissglobal-am.com/


http://www.jbfundnet.com/Login.aspx?ReturnUrl=%2fweb%2ftools%2fhome.aspx

The JB Multistock Black Sea Fund trades as JBBSEUA:LX at 29.66 EUR:
http://www.bloomberg.com/quote/JBBSEUA:LX

Bottom Line: As I must repeat this part again because I believe that it is very important to understand. I think it’s important to know that we are talking about multi-billion dollar companies here and if a multi-billion dollar company had previously seen enough in MRIB’s operations to own such a huge position of millions of shares back when MRIB was publicly operational, then if MRIB can confirm that it is again becoming operational once again, then I think we all should immediately see that it will then definitely be worth learning why a multi-billion dollar company would want to own so many millions of shares in MRIB. Also, I think that it’s safe to presume that if the position of shares would have changed at any time, an amended Schedule 13G would have been filed. Still, it’s important to know what such a company thought about MRIB back when MRIB was operational. Something very huge could be upon us.

v/r
Sterling

v/r
Sterling