Replies to post #36294 on Vystar Corp (VYST)

[richme]

Great post! Nice reality check for Vystar Corporation and what may or may not happen in the future. I have ben thinking along the lines that as happens in OTC pinks with all the bluster and hype that the buy back and merger may not happen at all. The number of times "soon" has been used without anything happening is concerning to me and maybe to other as seen in the trading patterns. Buy and dump as soon as a small gain is made. I do not have the millions of shares some claim to have but I do think from time to time that I did not sell my shares to look for some other stock and I do have one in mind; no debt and steady growth.


I have been doing some checking on Rotman's. It is reasonable to believe that it exist but to the degree posts make it out to be?

We will see the buy back and merger...………..soon!!!!

[StocksGoneWild]

So much of this post is complete garbage...

And that's ignoring the 500M outstanding shares number you're using. That's a very optimistic guess, and represents the absolute best-case scenario.. The TA is gagged, and there are 1.5 BILLION authorized shares. Assuming the OS is still anywhere in the realm of 250M-500M is pretty naive, imo.

The OS is approximately 500mm. Could possibly be as low as 450mm and as high as 550mm. The only reason why they raised the AS to 1.5b is for the reserves on the notes. Without reserves on the notes, you could pay penalties on notes. GR played it extremely safe and went like 10X reserves on the notes, eliminating any possibility of penalties on any notes, and raised the AS to 1.5bil.

Also, this whole "the TA is gagged" is the latest of the big misnomers of Ihub. The program has changed on the OTC. Now, just recently effective, all TA's use the Transfer Agent Verified Shares Program. There is no more calling TA's for share structure info. Anyone saying "gagged TA" is behind the times. If you really want to know the OS, call this # [phone] then press 2. Leave a message and someone who watches the DTC sheets very closely will be able to help you with the VYST OS figures...while you're at it, ask about the 1.5bil AS, and confirm exactly what I am telling you....

https://www.otcmarkets.com/corporate-services/transfer-agent-verified-shares-program

https://www.otcmarkets.com/files/Transfer%20Agent%20Verified%20Shares%20Program.pdf


Here are a few random examples of other OTC's filings with verbiage on reserves on notes and the AS.

[stervc]

lordichabod**Valuation with only a $4.65 TAX NOL...

As for why the Authorized Shares (AS) was raised, read below as it is a non-issue:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146912174

Thanks for this explanation. I will explain why I still believe we are fine regardless here with VYST. Within this Investopedia video, they applied that Tax NOL as you have explained it so let's go with what you had explained as a worst-case scenario to create a new VYST valuation:
https://www.investopedia.com/terms/n/netoperatingloss.asp

Let's presume a VYST valuation with only using the $4.65 Tax NOL that you have stated. That would equate to having that deduction for roughly 6.73 years going forward. I'm not an Accountant (CPA), so I'm not sure, but I think that Tax Reform had eliminated the numerous tax brackets for corporations and instead imposed a flat tax rate of 21% tax on C-corp income.

No big deal. Let's go with the 15% that you used for this example. That still could be a blessing in disguise too because the 15% corporate tax rate would equate to VYST having to pay $5,250,000 in taxes. Regardless to what's used, the taxed amount is higher than the $4,650,000 Tax NOL Per Year.

If $4,650,000 can be applied from the Tax NOL, that would reduce, or should I say, put back Income into its valuation that would been applied towards paying taxes instead. So that would make the valuation with using the Substitution Property to look like this...

I like my sources for the trailing PE Ratio for the Furniture Industry being 36.53 better that I had previously posted which is more in line with what the Romans believe too so this is what I will use below.
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/pedata.html


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

$16,800,000 Gross Income + $4,650,000 Tax NOL = $21,450,000 Adjusted Gross Income

$21,450,000 Adjusted Gross Income ÷ 500,000,000 (OS) = .0429 EPS

.0429 EPS x 36.53 PE Ratio = $1.56 Per Share Gross Valuation


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

$6,650,000 Net Income + $4,650,000 Tax NOL = $11,300,000 Adjusted Net Income

$11,300,000 Adjusted Net Income ÷ 500,000,000 (OS) = .0226 EPS

.0226 EPS x 36.53 PE Ratio = $.82 Per Share Net Valuation

Still, getting to the NASDAQ is very doable. So based on logical deduction after VYST acquires Rotmans, it should fundamentally trade somewhere in the area of .82 to $1.56 per share. The company believes that after the acquisition that it would trade high enough to meet the $4.00 minimum bid for 30 consecutive days. After comparing VYST to Wayfair and Bassett Furniture within the link below, I share their same sentiments:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=146944033

Question: Do you think a 1-5 reverse split would really be a big deal if they needed to do one to get the stock to meeting the $4.00 minimum bid for 30 consecutive days to meet NASDAQ requirements?

VYST stated within their 10-Q that at the discretion of their Board of Directors that a minimum of a 1-5 reverse would be done if necessary, but they told myself and other shareholders that it will be no higher than a 1-10. However, they believe they can get VYST to $4.00 without a reverse split. Either way is awesome in my opinion as I had posted some examples justifying my belief. Personally, I'm hanging around to see just how far they will get this.

v/r
Sterling