Replies to post #10632 on BioNitrogen Holdings Corp. (BIONQ)

[flaflyersfan]

Kakaobaron, 40 million new shares of BION were issued since January 1st. EOM

[LongRun8]

I'm pretty sure that construction is supposed to be 18 months. Considering they haven't cracked ground yet, nor started selling bonds, best case scenario is that they start construction beginning of third quarter 2013 with completion end of fourth quarter 2014. So no product till start of 2015.

[kenny ray]

great feed back,thank u so much,this is information that will help many better understand what can happen and be more prepared in theyre efforts to build much more desirable investment stucture in bion success.im long haul as well and will be at the end of the rainbow when the storm clears.by the way if my memory serves me correctly,the projection for florida plant completion and start of production was estimated by byran to b early spring 2014,im certain ur on target if no unforseen delays come about.once again thank you

[Dave1865]

Thanks for your review. I will raise a couple of points for discussion/clarification:

If we assume $300 million in revenue, the cost is assumed to be $150 per ton or for 750,000 tons = $112,500,000. Therefore the net income is $187,500,000. This is the earnings figure to use. I do not believe you should use Gross sales as earnings.

Therefore, if I am correct, that would reduce your targeted share price with a P/E ratio of 40 to:

Earnings per share. = 187500000/500 million shares= .375

P/E = 15

Note: we really need to learn more about the United Suppliers contract with BION. The press release said it had a floor of $250 per ton. If that is the actual rate paid to BION than the P/E would look to be under 10.

Any thoughts?