Replies to post #1735 on Vystar Corp (VYST)

[getoffyourass]

Thank you again stervc. Much appreciated.

[Carjockey2]

You da bomb!!

Thanks stervc!!!

[crudeoil24]

HUGE> It's all about growing revenues!!!!!

VYST

[Milo1]

Wow! Silver going to get up here quick.

[CHIEF-RISES-ABOVE]

Stervc with all the recent form 4s Insider Ownership, can anyone give me a rough estimate of how much was invested here by insiders? Total dollar volume? The total cost of all shares they purchased?

VYST!

[reader3]

Has the acquisition taken place already?

[stervc]

Key Point #3**VYST $1.5M Debt Paid & Acquisition Payment

This is huge in my opinion and shows that the company is serious about moving forward with their goals. Also, important to note, I was informed that the Rotmans Furniture store acquisition price is $4 million that will be bought with cash and stock that only converts post reverse split price. The stock component just can’t convert unless it’s post-reverse. This means that the acquisition will be a lot less dilutive. They wanted to be overly fair, especially since the Insiders own over 75% of the Outstanding Shares (OS).

Within the PR below, pay close attention to where it says... CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.

This is a huge show of confidence that leads me to think that they believe that such 15 Million shares are considered at a discount to where they still would make money off of their shares for knowing what is coming. Think about it...

$1,500,000 Debt ÷ 15,000,000 Restricted Shares = .10 Per Share

This means that they were willing to accept 15,000,000 of VYST Restricted Shares at .10 per share to pay off $1.5 Million in Debt. Maybe it's me, but this leads me to believe that whatever they learned to accept such a payoff in VYST Restricted Shares, is going to take the price far higher than .10 per share. Read the PR below:

https://seekingalpha.com/news/3370252-vystar-pays-long-term-debt-1_5m
Vystar pays off long-term debt of $1.5M

Jul. 16, 2018 9:02 AM ET|About: Vystar Corp. (VYST)|By: Niloofer Shaikh, SA News Editor
Vystar Corporation (OTCPK:VYST) has paid off $1.5 M in long-term debt, for a total reduction in long-term debt of $2.6M this year.

CMA Investments, LLC and its guarantors accepted 15M shares of restricted Vystar common stock as payment for the principal and interest on the decade-old loan.

Stated Steve Rotman, CEO of Vystar, “Vystar is now totally free of long-term debt and liens. This helps clean up our balance sheet and enables a fresh start as we execute our strategic plan that includes further acquisitions, expanding the Vytex distribution network, development of new Vytex formulations, and development and launch of new product lines.”

v/r
Sterling

[Stock Logics]

The IMMEDIATE VALUATION of .26 per share and .67 per share DOUBLED to .52 cents per share and $1.34 per share.

WHY???

Because in todays's PR we learned that they are doing a share buy back of 250,000,000 shares, leaving half in the same amount of shares.
The valuation stickied above from stervc was done on January 11, 2019, 4 days ago.

Present OS is 500,000,000. Will be cut on half soon.

THIS IS HUGE !

$VYST

[cjstocksup]

Sterling please update this. After yesterdays news the VYST valuations should be double at $1.34 and .52!

Key Point #2**The Immediate .67+ & .26+ Valuations

I have seen where some had posted where Rotmans generates between $50 to $100 Million in Revenues. I was told by the company that such was not true. The company told me that Rotmans generates over $35+ million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin. The company informed me that all the conversions have been completed and that the Outstanding Shares (OS) should be somewhere below 500 million shares. From my conversation, the company believes that the Price to Earnings (PE) Ratio is higher than 20 for its growth rate, but I will use 20 to remain conservative. From these variables, we can derive the Fundamental Valuation as indicated below from two different models: Gross Profit Margin Model and the Net Profit Margin Model:

Gross Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 48% to 52% Gross Profit Margin. I will use the 48% to remain conservative. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .48 Net Profit Margin = $16,800,000 Net Income

$16,800,000 Gross Income ÷ 500,000,000 (OS) = .0336 EPS

.0336 EPS x 20 PE Ratio = .672 Per Share Gross Value


Net Profit Margin Model
The company informed me that from their over $35 million in Revenues, they have a 19% Net Profit Margin. Consider below to derive an Earnings Per Share (EPS):

$35,000,000 Revenues x .19 Net Profit Margin = $6,650,000 Net Income

$6,650,000 Net Income ÷ 500,000,000 (OS) = .0133 EPS

.0133 EPS x 20 PE Ratio = .266 Per Share Net Value

The company told me that FINRA will likely have them roll Rotmans’ financials up into VYST as the financials for moving forward because of how huge the acquisition would be for the VYST.

v/r
Sterling

[cjstocksup]

Sterling the post I am replying to is the one you need to update and then get sticky noted again. It should be double base on yesterdays news.