Replies to Post #63077 onVystar Corp (VYST)

Replies to #63077 on Vystar Corp (VYST)

RavenDusk1

04/03/19 9:14 AM

#63079 RE: stervc #63077

Morning VYST

CA$H I$ KING

04/03/19 9:14 AM

#63080 RE: stervc #63077

Give us hell my friend!! We like it rough!! :-D VYST

Don Quixote

04/03/19 9:19 AM

#63087 RE: stervc #63077

Bring it stervc!

Catpole

04/03/19 10:31 AM

#63176 RE: stervc #63077

I understand and fully agree! Perhaps I should have used “predictions “ such as 20 cents by Friday or dollarland by May first. I look forward to your upcoming analysis!

doogdilinger

04/03/19 10:35 AM

#63182 RE: stervc #63077

Excellent sterling, I'm very much looking fwd to your upcoming posts woot-woot!!!

S_Steamer

04/03/19 10:39 AM

#63186 RE: stervc #63077

I am looking forward to these posts with more enthusiasm than the 10k!

TarheelBuyer

04/03/19 11:40 AM

#63244 RE: stervc #63077

Rev S preaching on VY$T the REAL TRUTH

stervc

04/03/19 12:00 PM

#63289 RE: stervc #63077

VYST Updated $1.22 to $2.45 Gross Profit Valuation...

Gross Profit Margin Model

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

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

The company released news below that it was buying back 250,000,000 shares out of its roughly 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

I will do a valuation to reflect if the buyback goal is achieved and a valuation to consider if the buyback never happens.

Back in Jan 2019, the company's IR informed me that from their over $35 million in Revenues that will exist from the acquisition of Rotmans Furniture, they will 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) if the buyback goal is achieved with an OS of 250 million shares:

Revenues x Gross Profit Margin = Gross Income
Gross Income ÷ Outstanding Shares (OS) = Earnings Per Share (EPS)

$35,000,000 Revenues x .48 Gross Profit Margin = $16,800,000 Gross Income
$16,800,000 Gross Income ÷ 250,000,000 (OS) = .0672 EPS

From my conversation with the IR, 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

EPS x Price to Earnings (PE) Ratio = VYST Share Price Valuation

.0672 EPS x 36.53 PE Ratio = $2.45 Per Share Gross Valuation

Consider below to derive an Earnings Per Share (EPS) if the buyback goal is ”not” achieved with an OS of 500 million shares:

$35,000,000 Revenues x .48 Gross Profit Margin = $16,800,000 Gross Income
$16,800,000 Gross Income ÷ 500,000,000 (OS) = .0336 EPS
.0336 EPS x 36.53 PE Ratio = $1.22 Per Share Gross Valuation

If this number or any other variable changes in the future, then use the Substitution Property accordingly:

If in the future a more finite number exists for any variable that I used above, use the Substitution Property to replace such variable to any variable to make such thoughts make sense to you. There is no right or wrong, but only differences of opinions. So please don't take the valuation post too serious as if it's the gospel. Again, only use it as a framework to use once the audit is done to release the actual numbers.

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.