Company Valuation 101 - Question, page-18

On pure balance sheet as it sits today you are 100% correct. Valuation is probably $1M - $2m

Based on :

- Strategic Investor (Mason) investing $80m to secure Australia’s largest IF producing factory

- Raw material supply secured to service close to infinite supply + or -,

- Strategic Investor ( Mason ) investing several 100’s of million to secure retail chain in China to sell WHA IF

- CFDA approval imminent ( it is a formality).

Then yes $300- $350m is understandable and the market has factored that in accordingly.

Putting aside channel partner arrangements in 8 other countries including Australia.

To build that channel , or partner up to purchase it as they have , it will cost you a minimum $500m. (Acquisition of factury, retail chain alone).

Factor in capacity to sell 20m tins of IF per annum through this channel , (they have the capacity and the agreements locked in ) then yes current valuation is “understandable”.

Execution of sales over the next 3-4 qtrs will see a valuation 10- 20 fold where it is today.

The only question I have is : will they execute on sales ?

Answer : it’s not overly difficult to fill tins with IF powder to supply your secured channel.

I fortunately or unfortunately know management far too well. They deserve the money they are all paid and will execute accordingly.

SP of $30 and valuation of 5-6 Billion is 24 - 48 months away.

Will the SP fluctuate violently between now and then ? Yes.

If you’re in it for the long haul 3-4 years - you will retire on a significant investment made today.

I hold roughly 300,000 shares and won’t be selling any of them within the next 5 years.

Yes traders can trade this stock all day long, there will be the opportunity to do so. WHA will be a top 5 Australian IF supplier to China ( or do you honestly believe Mason have invested $500 million in building and securing the channel for no good reason ?) - local sales are insignificant.

Good luck to all current and future holders

WR