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stervc

04/03/19 1:17 PM

#63399 RE: doctahj #63396

doctahj, with this VYST Conservative Valuation...

Your thoughts are greatly appreciated, although a little more conservative. I can respect those thoughts regarding VYST. I think all should read what you posted to air on the side of being more conservative although I do see that you did not include the $18.6 Million Tax NOL:
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=147990911

Somehow, the $18.6 Million Tax NOL will be applied in a very positive way that I believe will have a positive impact on the value of VYST. I did not include the $18.6 Million Tax NOL in my valuation post either.

v/r
Sterling
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HMB2010

04/03/19 1:18 PM

#63400 RE: doctahj #63396

"IMHO, I do believe we will see VYST trading in the $0.25-0.50c range in due time if everything checks out. "

Check Please....dropping any minute !$!

VYST
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davidsan

04/03/19 1:42 PM

#63410 RE: doctahj #63396

Regarding PE ratio's used in calculations, just a few thoughts, in relation to VYST especially: For the overall stock market an average 20 PE is reasonable in healthy times. I've seen the average PE run over 40 but that tends to be near market tops. Now that being said, some industries, techs come to mind, have been known to have average PE's closer to 90/95. And over these many years I have seen individual strong growth companies achieve sustained PE's in the multiple 100's, and shorter term PE's in the mid to high end of that range.

I only mention all this to point out that PE valuations can be a faulty way to assess potential share price, of a strong growth stock especially.

Now, Rotman's may be solid financially, even a leader in its conservative furniture industry, but I don't believe that using it's industry average PE is a fair way to assess the potential here with the soon to be consolidated companies of VYST and Rotman's. That might provide an idea of the very low end of what's possible and possible very quickly, but IMHO, with what I see as the growth potential of Vytex and later the FEC division, i see this soon to be announced consolidated company as a strong growth company not a conservative furniture company; otherwise, I don't believe Rotman's would have agreed to the consolidation/merger to begin with.

IMHO even a 40 or 50 PE is conservative in the case of VYST, and once it really gets rolling, or the case is made that it will, there's no reason this couldn't be one of those strong growth plays that have share price based on projected earnings a year or two out that are in the 100's. I've seen it happen many times. At the very least, using a Rotman industry PE of 14 or even 20 is IMHO looking back not forwards and way too conservative.
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doogdilinger

04/03/19 1:43 PM

#63411 RE: doctahj #63396

Nothing wrong with taking a conservative approach doctahj, and we know the rotmans fully audited fins are coming 30 to 75 days after the rotmans acquisition closing terms get announced. So for now, the main valuation driver of the pending official Rotmans acquisition is going to be the Rotman's per annum revenue run rate and gross profit margin imo. And we also know VYST is moving into full-fledged commercialization mode on all 3 of their main subs simultaneous with the pending official Rotmans acquisition...so lord knows that by the time the full Rotmans 2+ year audit arrives and VYST puts all their subsidiaries onto the same new April 30th fiscal year end financials coming after this 1st set of Dec 31st fins, we're all going to have a plethora more factual numbers to work with when attempting to apply the same ever-evolving/emerging increasing valuation metrics big money is going to be applying and IMO VYST's PCAOB registered auditors are definitely going to be utilizing the NOL and I whole-heartedly believe that VYST is still going to be implementing their share repurchase program...so we're gonna be having fun trying to stay on top of the increasing valuation metrics no matter how any of us attempt to slice or dice the increasing numbers coming right cheers!
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uglypug

04/04/19 9:11 AM

#63801 RE: doctahj #63396

Current valutions are fine but where are the future projections? Have to look at the whole picture friend.
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investtoski

04/04/19 9:22 AM

#63810 RE: doctahj #63396

Until the 10-K and 8-K comes out with the real numbers I think you 're valuation is much closer for a sustained PPS. One thought though is that what ever valuation is considered, I see the Rotman's revenue is added but there is no consideration for the shares that Rotman will get added to the O/S. NHS holdings got 27,000,000 shares or there about. How many shares will be issued for the Rotman consolidation and won't that affect valuation metrics?