RE: Masks25 Nov 2020 18:48
Bale 1984,
one thing the masks are about a quid or were you referring to the SP? 40p one day but not in the very near future.
Try looking at market cap.
if a company makes so many masks in this case lets take 5 million a month at one pound each. That is 60 million a year
But that is not profit, that is turnover.
Out of that deduct payments or leasing for machinery, peoples wages, cost of materials, transportation, advertising, commercial property rent ( which goes up as your annual turnover increases) and that 5 million income will likely give you a 1.0 to 1.25 million (Use this as a ball park figure 20 %)
Now if we assume company turns over the 5 million masks per month, that is 60 million a year. let us also assume that a company can be valued at between 5 and 10 times profit/ turnover
On turnover we ha 60 million x 5 = 300 million x 10 =600 million that would be 20 to 40p share.
if we now take a more realistic approach of actual profit 12 million a year
!2 x5 and 60 million x 10 is 12 is 120 million a year SP now at circa 1.5 billion shares is 4p
This is only a generalisation.
More masks can be made, diversity of products (which they have) higher efficiency and cost cutting and not forgetting overseas manufacturing vast volumes with a slightly lesser profit if P2F or paying royalties if incorporated into their own masks.
This is nothing more than to give you an idea of Market cap against Share price. There are remember around 1.5 billion shares in issue.
For you to consider what the share price will be, consider the market size, how long you can supply it for. in a couple of years time the demand for masks may fall.
Perhaps you could let me know on how you have derived around 40p per share if not just plucked out of the air.
My opinion fwiw is start production 4 to 6p, as production increases then 10 to 12 p within 6 to 9 months. I could be wrong but as I say that is just my opinion. On no news we may still see a slight fall of another 10% to 15% or so.
Regards