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Skribe

04/23/11 12:11 AM

#12291 RE: TREEPLANT #12290

Valero? Possibly NASDAQ.

jlglex

04/23/11 11:49 AM

#12293 RE: TREEPLANT #12290

The Super-Optimistic Scenario for 2011 ...

> All 1.1 Billion of current contracts upgrade to Method 2.
> Valero signs on for another 1.1 Billion of Method 2.
> ADM signs on for another 2.2 Billion of Method 2.
> All infringers settled for a total of $100 Million.
> All infringers sign up for Method 2, going forward.
> All 5 Billion of production is online by Q4 2011.
> Corn Oil price rises to $6.00 per gallon.
> Assume dilution ends at 20 Billion Shares.

5 Billion gpy * 4% Method 2 corn oil rate * $6.00 per gallon * 20% royalty rate = $240 Million per year gross profit for GERS.

$240 Million - $4 Million (overhead) = $236 Million per year EBITDA.

$236 Million EBITDA * 12x (growth multiple) = $2.832 Billion Enterprise Value.

$2.382 - $0.057 Debt = $2.325 Billion Equity Value.

$2.325 Billion - 80% (Series D) = $0.465 Billion = $ 465 Million.

$465 Million / 20 Billion = $0.0232 per share.



$465