Too little, too late?With shs o/s over 400 million, co. must sell 8,000 units per year, every year, to justify current share price.
Units sold / yr | 5,000 | 8,000 | 10,000 | 15,000 |
Margin per unit | 2,000 | 2,000 | 2,000 | 2,000 |
Gross profit | 10,000,000 | 16,000,000 | 20,000,000 | 30,000,000 |
SG&A | (8,000,000) | (8,000,000) | (8,000,000) | (8,000,000) |
ebt | 2,000,000 | 8,000,000 | 12,000,000 | 22,000,000 |
30% income tax | (600,000) | (2,400,000) | (3,600,000) | (6,600,000) |
Net income | 1,400,000 | 5,600,000 | 8,400,000 | 15,400,000 |
Shs diluted | 403,690,928 | 403,690,928 | 403,690,928 | 403,690,928 |
Eps | $0.003 | $0.014 | $0.021 | $0.038 |
P/E ratio | 15 | 15 | 15 | 15 |
Share value | $0.05 | $0.21 | $0.31 | $0.57 |