Another CR, but they have cracked the US market. I reckon they...

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catsecret

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02/04/16

12:26

Post #: 17407026
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Originally posted by Stockcount ↑

Its an inflection point. Win or lose, this is it.

They have the distribution agreements with the biggest players on the planet.

They have enough in the bank to pay for marketing etc. for another year.

The sales have to come in now.

Wont be this quarter(end of April?) or possibly the next one(end of July) but it will be growing by then. The 2nd half of 2016(end of Oct16 and end of Jan17) will be the kicker.

It is a company with a 15mill MC with 620,000,000 shares issued.

Add another 166,000,000 shares. That is 786,000,000 shares.

So that is a SP of 1.9c

To get to 6c the MC will have to get to 47mill. Triple in size.

Basically 10 times income, being 4.7 million after all costs/everything. Cash in bank after all costs and tax and interest the works.

So the profit on a single pack is say $5. This is important and I don't know the actual number but being conservative is all u can do.

940,000 units per year. 78,000 per month. 4000 a day.

It would be at least that number of stores across the globe selling the product.

How many stores exactly at end of 2016 and what is the profit per unit in AUD ?

So if each store sells 1 unit a day at a profit of $5 on a $20 pack, then I would think in very basic terms that RNO could get to an MC of 50 million quite easily. Maybe 2 per day and it becomes 100 mil and that is over 10c per share.

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Another CR, but they have cracked the US market. I reckon they will be pushing for 20c ps, with a view to getting bought out in 12 months time

RNO Price at posting: 2.5¢ Sentiment: Hold Disclosure: Held
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