RE:Updated Revenue ProjectionsHey “Rock34”,
Great post – it made me
think!
When I looked at that slide I only thought “finally, revenue growing like we all were expecting it to”.
Converting the bar chart to numbers made me really
think about it – thanks for that!
I noticed on slide 11 – Bulk Ingredient Division – it states:
Market Hemp-Derived Ingredients to the Following Industries:
• Food & Beverage (including alcoholic beverages, such as
beer) *****
On April 30 I posted this link to the Dec 31 FS + MD&A
Link to Sedar, not real exciting reading but IMO worth the effort. I picked up on
this statement on page 9 of the MD&A which I don’t think has been mentioned on the board:
"The product development specialists at SFIDC will be incorporating HempOmega™ into various food applications to determine the maximum inclusion levels. The project will also evaluate shelf life and nutritional labeling to determine what levels are required to meet Health Canada’s Omega-3 nutrient specifications.
The project was initially scheduled to complete by February 1, 2016, however
the deadline was subsequently extended to June 1, 2016. The extension was a mutual decision by the formulators at SFIDC and the Company to allow the development of additional product formulations.
SFIDC has successfully created
pizza dough and yogurt enhanced with HempOmega™.
Shelf life studies are being conducted and
results are expected by June 1, 2016." *****
Based on the above it appears that
two of MY main food groups will soon be healthier ;) ;)
*****
“Living in the sunshine”
Always DYODD
DKM
Rock34 wrote: Something that hasn’t been talked about much on here is the sales guidance slide that was provided during the webcast last Thursday. It shows how conservative my previous revenue projections were. Here is the breakdown:
Retail Lines:
Q1- $200,000
Q2- $220,000
Q3- $200,000
Q4- $300,000
2016 TOTAL- $1,100,000
P0S BPC Revenue:
Q1- $0
Q2- $600,000
Q3- $1,000,000
Q4- $1,200,000
2016 TOTAL- $2,800,000
Bulk Sales:
Q1- $1,200,000
Q2- $1,600,000
Q3- $1,900,000
Q4- $2,100,000
2016 TOTAL- $6,800,000
Total 2016 Revenue $10,700,000 (the presentation slide had $11.1M projected but I couldn’t tell the breakdown of the extra $400k)
I have spoken with the company since this presentation because they have put out revenue projections in the past that have not come through. Because of this I confirmed that they believe these projections are what is in the pipeline currently and does not project any new partnerships. Wow! The word “conservative” was used multiple times. Lets assume however that they land a little short and come up at $10M in sales……….with compareables trading as much as 100x (Burcon) revenue we will use a more standard 10x top line revenue projection for this industry which would give NSP a $100M valuation or somewhere between $1.75-$2.00 per share. CONSERVATIVELY!
Im not going to provide financial advice but I am buying all that I can. This is a once in a lifetime story of undervaluation with products on retail shelves, patented technology that the global economy is starting to realize as second to none and a product source (Hemp) this is just starting to explode. Im guessing we have a short time at this price range now….if HempOmega wins new ingredient of the year this week and we get cashed up shortly after (even though we are cash flow positive most months already we need explosive growth capital imo) then we should trend towards $1.00 really fast.