Respectfully, with your MMEX valuation thoughts...
Respectfully, any valuation will be left up to interpretation until the company actually deliver the goods for what's to be finite. I can respect the logic that you have delivered regarding the MMEX valuation thoughts that I had delivered. That's why I had stated for all to use the ”Substitution Property” for any different kind of consideration or variable that might change or turn out to be different.
Let's take what you are saying under consideration with using the ”Substitution Property” to derive a fundamental valuation here with MMEX. You are presuming $5 per barrel for the Net Profit Per Barrel from the $40.00 amount that I had considered for the price of oil per barrel. This equates to mean that you are considering a 12.5% Net Profit Margin with an 87.5% Net Expense Margin in order to derive $5 per barrel for the Net Amount Per Barrel.
What I considered was a 20% Net Profit Marin with an 80% Net Expense Margin. Even if you were to use the "Substitution Property" and plug in the variables you had considered for your margins/ratios, the fundamental valuation would still be north of .30+ per share.
Now consider within my earlier valuation post that I factored in the consideration of the $30,000,000 Net Operating Loss (NOL) as their MMEX Tax Shelter over a course of 20 years or 10 years. Logically speaking, it will probably be applied over a course of 1 to 5 years which would get MMEX knocking back on the door of the .583 valuation that I had posted below with using your margins: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=129475285
Below are some thoughts I try to post on forums where I now make a valuation post on to have a better understanding of where I'm coming from with my thought processes.
Respectfully, when I made that MMEX valuation post, the idea was for that post to not to be considered as the gospel for saying that MMEX is ”definitely” going to be hitting .583 per share one day. The idea was to see that in a ”perfect world” with all of the variables existing like I had mentioned or even if only some of the stars align, then one can see that such share price level could exist through logical deduction. Yes, more confirmation of financing, permits, and other approvals will be required, but from what I have researched, I see no problems with them obtaining such.
One of the primary reasons why I had done that MMEX valuation post was to create a ”framework” into one’s mind to plant the seed for determining a fundamental valuation. It’s better to have a framework to amend and tailor to what you believe key variables should be instead of having possibly nothing at all. This is why I stated to use the ”Substitution Property” to mix and match or exchange any of the variables to how one would like or deem that makes the best sense for them.
There are so many variables to consider and so many investors with a different variety of ways of thinking that there is no way that we all can get on the same page for our thought processes. This is why I always expect to have some disagreements with any valuation post I ever make. This is why I never take any disagreement personal. There is no right or wrong way of thought for the foundation of the variables. The thought is up to your choosing even though ultimately, it's going to be up to the company to manifest any of our thoughts into a reality with their operations to determine if any valuation will ever exist.
Some will think that the .583 per share price is too low. Some will believe that the .583 per share price is too high. It’s nothing personal for any of us to disagree with each other as my ”primary objective” was to get all to see that no matter how you slice the pie with changing any variable, the price of MMEX is still very likely ”undervalued” where it’s sitting at right now considering the risk that exists.
News 
Market Data 
Discover 
