Replies to post #50871 on Nate's Food Company (NHMD)

[mrMando]

I'm thinking in retail stores it will be just under $4 dollars a can and around $5 for online purchase. I know things might be less expensive on line, but in this case I feel the inverse will be true. I feel just around $2 per can wholesale . Just hunches

[stervc]

Consider this NHMD Valuation

Let’s say that the price of the cans will be cut in half from $5.00 per can to $2.50 per can. Now let’s do the math to figure a fundamental valuation for NHMD if they achieve their goals.

NHMD filed an 8-K with the SEC on 05/03/2016 @ 6:12AM that a large manufacturing company can help NHMD sell over 2,000,000 Units/Cans Per Month:

http://ih.advfn.com/p.php?pid=nmona&article=71331934
Item 8.01 Other Events

Since April 24th, 2016, the Company has been in negotiations with large manufacturing concern regarding a private label licensing agreement for Nate’s Pancake and Waffle Batter. The manufacturing group has represented that through their distribution network they will be able to sell over 2,000,000 units per month.

Let’s do the math.

2,000,000 Cans Per Month x $2.50 per can = $5,000,000 Revenues Per Month

$5,000,000 Revenues Per Month x 12 Months = $60,000,000 Revenues Per Year

NHMD Share Structure Per Website:

http://www.natesfoodco.com/
(as of 04/28/16)

Authorized: 500,000,000

Common Shares Outstanding: 249,106,891 (Last issuance: 04/28/16)

Float: 238,658,891 (Last increase: 04/28/16)

NHMD would trade within the Sector called Consumer Goods and further exist within the Industry called Processed & Packaged Goods which has a Price to Earnings (P/E) Ratio of 32.90 as of 27 May 2016:
https://biz.yahoo.com/p/342conameu.html

Now we can derive a valuation if NHMD was to meet this demand of being able to sell with its large manufacturing company over 2,000,000 Units Per Month. Let’s put together the ”Key NHMD Variables” to be able to assess a fundamental valuation.

Key NHMD Variables
** 2,000,000 Cans Per Month x $2.50 per can = $5,000,000 Revenues Per Month
** $5,000,000 Revenues Per Month x 12 Months = $60,000,000 Revenues Per Year
** Presume 20% Net Profit Margin
** $60,000,000 Revenues Per Year x .20 Net Profit Margin = $12,000,000 Net Income
** Outstanding Shares (OS) per NHMD Website = 249,106,891 Shares
** P/E Ratio for the Processed & Packaged Goods Industry = 32.90
https://biz.yahoo.com/p/342conameu.html
(P/E Ratios are confirmed from Yahoo link above as of 27 May 2016.)

Net Income ÷ OS = EPS
EPS X P/E Ratio = Share Price Valuation

$12,000,000 ÷ 249,106,891 Shares (OS) = .048 EPS
.048 EPS x 32.90 P/E Ratio = $1.57 Per Share Price Valuation

The question is… Is $1.57 a fair valuation for NHMD?

Well… No… Yes… or … Maybe.

It comes down to those variables remaining constant to actually happen. For any variable that would change, then use the ”Substitution Property” to replace any variable as deemed necessary. If NHMD can have manufactured and sells over 2,000,000 cans per month at approximately at $2.50 per can on a regular basis as insinuated, then there is a good chance that the $1.57 valuation could become a reality. If they only do half then consider half of such valuation to be a fair consideration.

Let’s take it one step further. This pancake batter per can is not going to be the only product that they will be offering to generate Revenues given some of its management’s past achievements posted below where from 2002 – 2012, products from Nate generated approximately $185 Million:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=122812606

As more is released regarding these other items to be produced/manufactured and sold, this will enhance the valuation of NHMD much more.

Still, to consider a few steps of importance further, NHMD has filed some 8-Ks with potentially bringing their product to Kroger, QVC, and ConAgra of which all are multi-billion dollar companies and could very well possess the support to deliver to NHMD to meet the over 2,000,000 cans that they believe will be met. See the 8-Ks below that NHMD filed with the SEC:

Kroger and QVC 8-K:
http://ih.advfn.com/p.php?pid=nmona&article=71307703

ConAgra 8-K Filed with the SEC:
http://ih.advfn.com/p.php?pid=nmona&article=71366244



Kroger is a $34.06 Billion company that has 431,000 employees and trades on the NYSE at over $35.00+ per share under the ticker of KR:
http://finance.yahoo.com/q/ks?s=KR+Key+Statistics
https://www.linkedin.com/company/kroger

http://www.thekrogerco.com/




QVC is a $12.23 Billion company that has over 10,000 employees and trades on the NASDAQ at over $27.00+ per share under the ticker of QVCA:
http://finance.yahoo.com/q/ks?s=QVCA+Key+Statistics
https://www.linkedin.com/company/qvc

http://www.qvc.com/
http://www.libertyinteractive.com/




ConAgra Foods, Inc. is a $19.77 Billion company that has over 10,001 employees and trades on the NYSE at over $45.00+ per share under the ticker of CAG:
http://finance.yahoo.com/q/ks?s=CAG+Key+Statistics
https://www.linkedin.com/company/conagra-foods?trk=ppro_cprof

http://www.conagrafoods.com/




The above value of the companies that NHMD has filed 8-Ks with the SEC to be in talks with definitely confirms that there is a possibility that a huge deal could be closed. Given the history of success from this management, I think it is fair to believe that something huge just might be in the mix to justify why they filed within their 8-K the belief of having a large manufacturer that can help them to sell over 2,000,000 units/cans per month. The achievements of this management generating approximately $185 Million from previous products should not be ignored:

http://www.natesfoodco.com/faq-1/
Q. Did Nate create the products for Nate’s Pancakes?

A. Yes. Nate also was responsible for all product development for Batter Blaster. Sean O’Conner was responsible for the sales and marketing for Batter Blaster. Nate has also created the following products/entities: Elite Foods: Revenue $5 Million (discontinued in 1997); Polenta Pack: Revenue $10 Million (sold to Monterey Pasta in 2000); Elena’a Food Specialties: Revenue $80 Million (sold to ADF Foods in 2001); Nate’s Product Line of Meat Alternative Products: Revenue $50 Million (sold to ADF Foods); Batter Blaster: Revenue $40 Million (discontinued in 2012). From 2002 – 2012, products from Nate generated approximately $185 Million.

v/r
Sterling