Replies to post #58029 on Creative Edge Nutrition Inc (FITX)

[FreeGreen]

I think a lot will have to do with their export business. I have questions about that. If they export will it strictly be to supply medical MMJ product, or could they also supply recreational to other countries as well? For me the primary short term prize is the built in Canada medical MMJ market. The secondary prize, maybe a bit further out (1-2 years) is possibly the biggest opportunity-- supplying the US recreational market. As we already see in Colorado, demand is high and supply is short. With the US Federal government taking a wait and see approach, and not making any promises, major US grow operations would be taking a big gamble. The beauty of the FITX potential is that is insulated by Canadian regulation. And a license from Canada Health is a perfect hedge to risk.

If US federal gov't doesn't re-classify, and FITX gets licensed and can export to supply recreational US markets, I think we are talking considerable $$.

But, first things first-- show evidence of building out grow operation in Windsor-Essex. And moev with pace.

Go FITX, LONG AND EXTREMELY STRONG!

[Janna]

My PPS Projection shows about 0.50 after five years.

Granted, this is based on a lot of unknowns. For example, I assumed the 80% Gross Margin that Bill quoted in Forbes, but I had nothing to go on for Operating Expenses. I assumed 60% for the first four years, and then assumed they would gain efficiencies through higher sales volume and better processes. So you see Year 5 staying flat to Year 4. But OpEx could be much lower or much higher. Who knows.

What this doesn’t account for is the start-up costs incurred in Year 1. I have no idea what this would be, and how much would be capitalized, if any, so I just left it out of the equation. I figured Year 1 would be all about getting operations off the ground in the eyes of the investors and decided to look at it from a “business as usual” perspective.

I tried to keep P/E to a reasonable level, but not too reasonable. So I projected the PPS based on a P/E of about 20. Of course, this being the frontier of a new industry, it will generate a ton of excitement and probably drive the P/E higher. I would guess maybe as high as 40, but in my opinion it won’t go any higher than that due to the 3.5 Billion outstanding shares, of which 2.5 Billion are restricted shares that will be eligible to enter the trading pool this year.

So I’m predicting $0.50, with a possible peak of $1.00 before the bubble pops. That’s a bit different from your $5.00 projection. Could you share your model so I can compare it to mine and see what I might be missing?

Of course, this is only my opinion based on the information I have available to me right now. I have no idea how accurate it will be when it’s all said and done.