Potential Revenue: $ 70 million/mth (250 million sticks)I did a little math calculation as we will be distributing our Poda sticks through Eson to the Chinese amarket later this year.
I am assuming a successful trial period.
I did a little research on Phillip Morris IQOS sticks and, they retail for $ 57 per carton of 200 sticks. It comes to 28 cents per stick.
Eson has stated that they will be distributing within 60 days 250 million sticks per month.
I see no reason why Eson will not switch over its complete line of products to the end to end solution offered by Poda since it is cleaner patented system and gives consistent flavor + there is no danger of fire as their system is closed off. Plus no smoke or toxics so no cancer.
If we assume similar pricing and with launch of 250 million sticks (I know that it can take a little time to reach this level) we are looking at sales of $ 70 million per monht or, $ 840 million per year.
The potential market for the world is 1.3 billion smokers, if each person smokes 10 cigarettes per day for 30 days it means 390 billion sticks per month. Do the math at 28 cents per stick and you get an idea of the MASSIVE MARKET potential.
I will let the experts determine what a reasonable valuation should be for PODA but generally when revenue is recurring it is not unreasonable that a company trades at 10 times sales.
If we assume sales of $ 840 million per year based on 250 million sticks sole then it is an $ 8.4 billion valuation, which is a far cry from our present $ 292 million valuation based on 146 million shares outstanding.
There is a reason why these big guys are joining us, look at these numbers.
Good Luck to Everyone,
mpo