Post by
challenger426 on Jul 30, 2021 2:59pm
Patience is key!
Just my own thoughts and numbers according to VERY's latest update.
In Q4, VERY's target production is 40,000 lbs per day. They state a $7/lb price for wholesale and $14/lb for e-Commerce. I will just use the $7/lb price in case they miss their target production.
Therefore:
$102.2M annual production = 40,000 lbs x 365 days x $7/lb
Price to Sales ratio (Market Cap divided by the previous 12 month Sales) drops down to around 3 at the current share price and no further share dilution (using market cap of $311M).
Based on this outcome and if VERY becomes profitable due to beffer efficiencies, do you really think VERY will still be trading at $3.20 in 18 months? I highly doubt it !!
At $122/share, BYND (Beyond Meat) trades at a market cap of $7.7B and a Price to Sales ratio of 18.46 with about $417M in sales. So give VERY the same Price to Sales ratio down the road instead of 3 as mentioned above and you have a possible 6x the current share price, that could be $18 per share in about 18 months.
If VERY can do $102.2M in sales, using the same 18.46 Price to Sales ratio by BYND, you have a Market Cap of about $1.88B. Take that Market Cap and divide it by 97.3M shares out and you get a share price of $19.39.
Patience is key!
Comment by
PhDtrader on Aug 09, 2021 6:05pm
102 million would be about a 1000% increase from current! Not impossible in 18 months, but just sayin, its a lot.