Worth Re-readingI will try to update my numbers this weekend, my gut feeling is they will blow you away.
Add in govn't kick backs to help with the desertification, and a Chinese media party on Dec 23. Get in now!!
I posted this a couple of months ago.
Free land, free labour force, GUARANEETED MONOPOLY IN THE COUNTY, subsidies and special
tax treatment, water, and this is for 70 years.
All MPE has to do is grow trees (isn’t that what they do?) and provide
capital to build a processing plant.
The free land can handle 80 000 000 trees, in 3 years they can produce 200 000 000 million kg of fruit a year, which in turn will produce 60 000 000 kg of oil. Now the NR does not tell us the mix of each cooking oil and bio diesel. So for ease of the numbers lets say 50% cooking and 50% diesel.
In year 3 and 4 you are looking at $174 900 000 in sales per year. If you read some of the articles I posted last week you know that similar companies have 40% margins. So $69 960 000 in
profit.
From 5 years on (remember 70 year contract) the numbers would be more like this:
80 000 000 trees, 5 kg a tree, 400 000 000 kg in fruit, 120 000 000 kg of oil. Now the processing plant can only do 100 000 000 of oil a year, so we will have 20 000 000 kg of fruit we can sell. On 100 000 000 kg of oil, again a 50-50 split. You would be looking at $291 500 000 in revenue. At 40%, $116 600 000 in profit/year.
Now even with all the free stuff this is going to cost some
money. Just for fun and I have no fact to base this upon but 15 million for a new plant and 5 million for incidentals like growing the seedlings. So at $1.50 we would dilute the shares by 13 million. In 5 years we would have 70 million shares outstanding and 116 million in profit/year. Or $1.65/share.
At 10 times earnings you would be looking at $16.50
share price. And now using a 25% discount rate today’s share price should be $3.91. And that is only for this MOU. Add in the other contracts and the share price should be like $4.90 - $5.00.
Come on people this is a screaming deal.