TSXV:NSP.H - Post by User
Post by
Rock34on May 05, 2016 6:43am
234 Views
Post# 24843332
2016 Revenue Projections
2016 Revenue ProjectionsWell we got some awesome news yesterday, as expected by those of us paying attention our Korean partnership was quietly ramping up this entire time. With the news that we have already shipped $2M in product with the order for another $1M in hand this stock OFFICIALLY becomes wildly undervalued. Lets not forget however that this is just one partner, we have so many more that we are talking too. Anyway, with yesterdays news I wanted to take another crack at a revised 2016 revenue forecast:
KBH Partnership – $6,000,000 conservatively. We have shipped $2M in product in 12 weeks since the initial PO giving us an average of say $700k per month in hulled hemp seeds alone (I wont guess at other product lines being discussed). With this math we should see another $4.8M in sales this year.
P0S BPC Facility - $500,000 conservatively. We know the facility is up and running and the revenue potential here in in the $1-$2M a month range. We are not there yet but I think its safe to assume $100k a month for the remainder of the year. That would be $800k so Ill stay VERY conservative here.
Natera- $250,000. No question that Natera has been slow to grow lately but that’s because the focus has been in other areas. It’s a great product that will have its day in north America.
PawsitiveFX - $250,000. Ill leave this projection here as well. Pawsitive has some big upside but its hard to know when that will be realized.
CHII - $750,000. CHII has stolen some of Nateras thunder. This brand is taking off and I think $750k is conservative based on what I am hearing.
Laguna Blends - $250k conservatively. Laguna actually owes us $1.6M more in 2016 or technically we own all of the health Canada approved blends that we have created for them. Im not overly confident that this plane will land completely this year so Ill project only a second P0 which will for certain happen.
The above listed product lines and partnerships are concrete projections and numbers that are very likely to be realized at this point. That would put NSP at roughly $8M in top line revenue in 2016. With compareables trading at 10x top line that would give NSP an $80M market cap. I also believe this puts the company in the black and we begin talking earnings per share. When you look at a company like Burcon trading at $120M market cap being much less diversified and having no revenue you can see how explosive this is going to get. Now add on Coco’s, CBD/MMJ potential when the time comes, more Asian partnerships which at this point sound incredibly likely and we could more than double this projection yet.
Moving forward I still wouldn’t rule out a cash infusion. I would prefer it be a bought deal and debt financing but if it’s a PP you’ll see my name on the list of places again. Its not that they are losing money, but when you are scaling up a business from no sales to $10M in sales in 12 months there is a lot of ramp up money required for capacity building and inventory acquisition. Getting cashed up soon would just spark us for a longer term run here.
Good times ahead all!