Replies to post #6854 on Pulse Beverage Corp. (fka PLSB)

[RobinT]

Great idea! I'm in.

[Jeff-M]

I think we should start a 10,000 club; anyone with 10,000 or more shares. . .now what you do with this club, I'll leave that to the next person; any ideas?

[QH]

I like the $10 target.

To get to the $10/share, how long do we have to wait?

My guess: Just read an article re Monster and Vitamin Water acquisition, where it said the multiple in the Vitamin Water buyout was 12 times revenue and the price tag was $4.2 billion. That means the revenue of Glaceau of the year before the acquisition (2007) was $350m, which in turn means that the company sold 17.5m cases of beverage ($20 per case for beverage seems a fairly good benchmark). 12 times is now seen as too generous for the Vitamin Water deal. Let's be a bit conservative and adopt an 8 times revenue for Pulse. Assuming no more new shares issued by Pulse in the next few years, we have 75 million shares (fully diluted based on today's numbers). Timed by $10, that is $700m for Pulse's valuation. We divide the valuation by 8 times, and we willneed $87m revenue to get the $700m valuatoin. That $87m will consist of 4.4m cases of Pulse beverage, roughly. Since a coconut water case has 24 bottles, the number of case we need will be lower. If the management can do 1 M cases in 2014, will it take them another 2 years to get to the 4.4m number? Probably.

Of course, if the Company keeps issuing new shares, the time will be longer.