Replies to post #3447 on Vystar Corp (VYST)

[Carjockey2]

Awesome DD as usual..

Brother you're the king of DD on the OTC.. THANK YOU AGAIN FOR YOUR CONTRIBUTIONS

[Mithrandir67]

so, let it start going up I would say!!!

[getoffyourass]

Excellent Sterling. Thanks again for your time and efforts. Much appreciated =)

[StocksGoneWild]

BOOM! Thanks, bro. Now I'm going to spread this post to every corner of the planet with an internet connection. Be back later. VYST

[mt77]

what a DD, thanks man

[MMMQA]

Excellent post.VYST is gonna be really good.

[OCMillionaire]

this needs a major sticky for anyone new coming in please.

[MTLTrader]

Awesome DD, you the man!

[Stock Logics]

The DD speaks VOLUMES! Anyone selling here is beyond ignorant or simple cannot read. Too funny! Added a nice chuck at these levels!

Ready for Silver!

$VYST

[rstar]

thank you for compiling this, plus oned it to get it on top of the page.


$VYST!

[RavenDusk1]

Thank you StervC for your usual comprehensive DD.
PS: Anyone pm-ing traders to sell and claiming no news...ummm, put down the Vodka Bottle and READ TODAYS 250mil share BUY BACK News! Trying to get people to lose huge potential percentage gains so you can get in cheaper...cuz ya misssssssed getting in below 01 should not be allowed to have PM privelages go VYST

[LETSWIN2020]

You sure 0.67 valuation ?

[doogdilinger]

Absolutely awesome summary of the VYST NAZ objectives thanks Sterling and bring on the upside insanity of the next SEVERAL weeks AND months weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

[mikeski74]

This is so freakin big. The PPS evaluation is off the chart and those who sold today will regret it. I’m holding this one till the end. Game changer for sure. Thanks Stervc

[HMB2010]

Awesome DD as always. Thank you for sharing Sterling!
Rare find here, filings in order and read like a dream!

VYST

[doogdilinger]

Dr. Osborn is my kinda guy sterling \m/

[Vintage1776]

Great d&d thank you

[BeardOfWallSt]

Amazing dd brotha. Definitely keeping a larger core than normal here

[stervc]

Edit 1: Key Point #2**New $7.00+ & $5.00+ Valuations

Some have recently confirmed that they have spoken to the CEO of VYST and confirmed that they now have intentions on getting VYST to the NASDAQ with meeting a minimum Bid of $4.00 per share for 30 consecutive days with ”not” a reverse split. I had not confirmed this thought by some, but after editing my valuation thoughts with the newly learned information that I will indicate below, I will show why such is very possible through logical deduction. Make sure to read the last section after the valuation thoughts. Let’s get started with this explanation.

With the acquisition of Rotmans, this was indicated in the VYST most recent 10-Q filed with the SEC under Note 12: Subsequent Events on Page 20:

https://www.sec.gov/Archives/edgar/data/1308027/000138713118006316/vyst-10q_093018.htm

** The company informed me that they are going to acquire 100% of Rotmans.

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 released news below that it was buying back 250,000,000 shares out of its 500,000,000 Outstanding Shares (OS) which leaves the OS to be 250 million shares:

VYST Stock Buyback of Up to 250 Million Shares & Eliminates Debt
https://www.otcmarkets.com/stock/VYST/news/story?e&id=1259730

From my conversation, the company believes that the Price to Earnings (PE) Ratio is higher than 20 for its growth rate. After doing further research, I believe they are correct. When analysts talk about the PE ratio, they commonly refer to the trailing PE which is why such is what I will use for the purpose of deriving this valuation:
https://www.investopedia.com/ask/answers/050115/what-difference-between-forward-pe-and-trailing-pe.asp

After the acquisition, it will be fair to consider that VYST will exist to trade within the Furniture Industry. Confirmed from the link below, the trailing PE Ratio for the Furniture Industry is 36.53:
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html

The PE Ratio is important because to get the Fundamental Valuation to consider for where VYST could exist to trade compared to the other stocks within its Industry or Sector, we must multiply the learned Earnings Per Share (EPS) by the PE Ratio for its Industry. The links below should help to better understand the PE Ratio logic as being the growth rate to help assess the fundamental valuation of a stock:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57154170
http://www.investopedia.com/terms/p/price-earningsratio.asp

VYST has $31,319,398 listed on their Balance Sheet as an Accumulated Deficit within their last Quarterly filing below:
https://www.otcmarkets.com/filing/html?id=13070644&guid=kjy8UWUD04sjm3h

To first understand what this is and the importance of what it means, I think it is important for one to understand that "Liabilities" and "Expenses" are two different things. "Liabilities" apply to the Balance Sheet and "Expenses" apply to the Income Statement. The $31,319,398 listed on their Balance Sheet as an Accumulated Deficit is nowhere near as bad as I believe it is being perceived by some. An Accumulated Deficit is used as a Tax Shelter for tax write-offs. It's a non-issue and basically a psychological paper entry because it will only affect the Balance Sheet and not the Income Statement for valuation purposes to derive an Earning Per Share (EPS). This will have no negative effect on the outcome for what the company's EPS will be now or in the future, but instead, on the contrary.

An Accumulated Deficit greatly enhances the company’s position as a huge acquisition candidate. This is very attractive for a huge positive Revenue generating company with a significant amount of Gross & Net Income to merge into VYST via an acquisition. Therefore, Rotmans Furniture, with its over $35 Million in Revenues and while having a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin is a great candidate for VYST.

This is huge because the $31,319,398 is available to be used as a 2 year carry back and 20 year carry forward Tax Net Operating Loss (NOL) to reduce the taxable income for the company’s future tax years. The company decides how they want to apply the Tax NOL. This is very important because this is what will help the company to trade to meet the minimum $4.00 per bid for 30 consecutive days to meet the NASDAQ share price requirement. VYST will only need to maximize the Tax NOL by carrying it forward for one year. That means that the $31,319,398 will all be applied to the financials of VYST for the one-year time frame to have $31,319,398 applied to its coming year profitable Income Statement after completion of the acquisition of Rotmans.

$31,319,398 = Tax NOL One Year Carry Forward

Again, I was told by the company that Rotmans generates over $35+ million in Revenues with a 48% to 52% Gross Profit Margin and a 19% Net Profit Margin. The fundamental formulas that I will use to derive the valuation for VYST are below so that all may understand:

Revenues x Gross/Net Profit Margin = Gross/Net Income
Gross/Net Income + Tax NOL = Adjusted Gross/Net Income
Adjusted Gross/Net Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)
EPS x Price to Earnings (PE) Ratio = VYST Share Price Valuation

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 Gross Profit Margin = $16,800,000 Gross Income

$16,800,000 Gross Income + $31,319,398 Tax NOL = $48,119,398 Adjusted Gross Income

$48,119,398 Adjusted Gross Income ÷ 250,000,000 (OS) = .192 EPS

.192 EPS x 36.53 PE Ratio = $7.13 Per Share Gross Valuation


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 + $31,319,398 Tax NOL = $37,969,398 Adjusted Net Income

$37,969,398 Adjusted Net Income ÷ 250,000,000 (OS) = .151 EPS

.151 EPS x 36.53 PE Ratio = $5.51 Per Share Net Valuation

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. This is why from the recent VYST news released, it was indicated how they are making VYST debt free in preparation for the acquisition. I was informed that they are prepared to roll 3 years worth of audited financials up into VYST to consummate the acquisition.

Read below to see that VYST is going to have yet still much more going on within the company operationally to include the Rotmans acquisition.


** The company informed me that they are going to acquire 100% of Rotmans.

** Rotmans Furniture has won Retailer of the Year three out of the last five years running.

** Currently, Rotmans is 280,000 square feet with just shy of 200 employees.

https://www.rotmans.com/

https://www.youtube.com/user/rotmansfc

Rotmans Furniture & Carpet Store
https://www.youtube.com/watch?v=TXD-6Fp67kU

https://www.bloomberg.com/quote/VYST:US
About Vystar Corp (VYST)
Vystar Corp. creates natural rubber latex. The Company's product is used in an extensive range of products including balloons, textiles, footwear and clothing (threads), adhesives, foams, furniture, carpet, paints, coatings, protective equipment, sporting equipment, and especially health care products such as condoms, surgical and exam gloves.

https://www.vystarcorp.com/

https://www.vytex.com/


https://www.amazon.com/s/ref=nb_sb_ss_i_8_6?url=search-alias%3Daps&field-keywords=vytex+cloud+mattress&sprefix=vytex+%2Caps%2C160&crid=9Z4GGCJEMNW7

Vystar Vytex on New To The Street 4/30/2017
https://www.vytex.com/blog/category/videos/
https://www.youtube.com/watch?time_continue=4&v=jGbuFFA9vJw

Vystar Vytex New To The Street 3/20/2017
https://www.vytex.com/blog/category/videos/
https://www.youtube.com/watch?v=HEMziQw0LpU

https://www.rxair.com/

http://www.fluidenergyconversion.com/

v/r
Sterling

[jdcpa1]

Stervc, I just read your post on this thanks for summarizing. I'm not sure I understand how they will buy Rotmans for 4 million in cash and stock. They seem to have little no cash and or are burning it to pay off convertible debt. How could a 4 million dollar acquisition all the sudden be worth $0.50 cents in share price or hundreds of millions in market cap? I think it kind of defies logic. All my opinion of course you just trying to understand the conflicting analysis comments.

[General Grievous]

250 million share buy back is based on numbers based ib thenotes correct so paying off 50k in debt and say for example worst case scneraioo (like the stock drops down to under a penny the convrsio for50k can quickly turn to millions of shares...so they technically can say 250 mill...but deceiving imo. its ot relly a buyback its a PAYBACK that otherwise if not paid back would turn into added on shares....theyre samrt in the wording I give them thatthough!!!...but to ay they re buying back 250 mill off the market I a whole different story

[Geegee678]

first, thank you for an amazingly thorough, detailed and informative DD post. I am sincere in doing DD, so please don't take this the wrong way, but i am confused by the key point #1 which states there will be no reverse split unless absolutely necessary to bring the stock to nasdaq amd key point #3, which states the acquisition will be purchased through cash and stock and that the stock would not convert until AFTER a RS? that pretty much sounds like a reverse split ia guaranteed..?

[turn144]

That was probably the most comprehensive DD post I have ever seen for an OTC stock.

Clear, concise, cogent, intuitive, strategic and forward looking.

TY.

Others may exist but haven’t come across one like this.