Hmmm, $30 or $40 a share in a few years? I think it could happen a lot quicker than that.
Let's examine what would it take in terms of revenue to justify the current share price only on a numbers basis. At 30 million shares X $7 a share, that's $210 million in market cap.
At a rough 10% rate of return, only $21 million revenue is needed to justify the current stock price. Correct me if I'm wrong as maybe the market now uses 4, 6 or 8% in today's reduced revenue marketplace. But 10% is easier to work with.
Yet, the figures bandied about here are $30MM (figures out to $10 a share) or $50MM ($17).
Way out numbers: $100MM ($34 a share), $200MM (you can figure it out as well as I can).
So, if revenue starts flowing soon, the market may get exuberant about BU's chances and push the share price much higher than pure revenue would immediately dictate. And this could go very fast.
The market might decide that annualized revenue projections (what it will look like at the end of the year given growth rates) plus future annual growth rates would equal a stock price a lot higher than current revenues would dictate. Market would need only a bit of information to start projecting like crazy.
One tipping point we're looking for is a breakthrough soy beverage that starts selling like hotcakes and takes the market by storm. At that point, all companies pile in to the new category. It could happen very quickly like energy drinks for example.
The market then starts going "what if" and projecting into the future...like all us Burcon shareholders have been doing for years!!
Good luck to all longs.
By the way, happy to take your corrections to my above financial analysis.