Don't be too late to enter SPNG. Now is still cheap.
It will become a tradeable stock at $1 and ppl will be playing it.
Remember that stock prices always come to equilibrium with the company
worth.
Honestly, ask yourself how much you are willing to pay for the entire
spongetech business.
$200mln (current price) ? the owner will slap you, because they have
spent 10 years to build up a company and this is how much you offer?
$1bln? Well, he may think for awhile, this sounds better, but he may
not want to sell it at that price.
Why? Spongetech has just burst out of its infancy state. Now it's
clearly destined for growth. The current product line only has 25
products.
Imagine how many products they will have soon. Using other brand names
too with it as the parent company. Have you seen a sponge facial
product? Sponge Facial Toner? How about a sponge glass cleaner? Sponge
mop? Sponge Air freshener? Spongebob...
There is going to be about 100 products in the pipeline as said by
their CEO. So we have to see the possible future earnings of this
company.
Nickelodeon believes SPONGEBOB alone would generate $20mln revenue.
Carwash could generate $100mln revenue, Uncle Norman Petcare could
generate $20mln revenue. With the future, other products may generate
additional $20mln at the very least.
So by 2010, expect 20+100+20+20= 160mln revenue. Profit margin is
super high. They could profit 30% which is $48mln. EPS is thus = $0.06
by 2010.
Expect that to rise to $0.50 by 2011. Growth is estimated at 80% per
year.
Hence if I were the owner of Spongetech, I will sell this at $5bln.
Can you see with a discounted P/E of 10 for this sector, which will
rise in times of good economy to 25, this stock with 2010 EPS estimate
should trade at $0.60 to $1.5
With 2011 estimate. expect it to be a $5 stock.
I predict a lot of subsidiary brands to be formed by spongetech
handling the various cleaning proudcts using their delievery system.
Thus I will disclose my holdings.
Bought a bit late at $0.036, $0.044, $0.56, $0.08, $0.10, $0.22,
$0.225, $0.235
You may wonder why I keep buying as the price went up.
Well, I am more confident that this stock is not a pump and dump stock
like those I have seen elsewhere such as ETGG, and the likes.
And I had no money, so I had to divest my shares in CITIBANK, BAC,
MGM, LVS, just to buy SPNG.
All together at the current price of $0.234, I have $300k worth of
SPNG. I am holding this for a long term ride with the company.
Expect the company to buyback shares when they make more profit. And
soon, we may be receiving dividends.
Look at Proctor and Gamble CAP, its 151billion! Surely spongetech is
able to steal some of its market.
I believe this is somewhat like the next MSFT, but of course not as
big as microsoft, but has potential to keep growing. I missed MSFT
because I wasnt born yet, but now I will not miss SPNG. Spongetech is
the future. Every household will be using Spongetech product. May it
be a sponge or some cleaning device. I wouldnt be surprised if they
could come out with a Sponge robo cleaner. Perhaps in the shape of
SpONGE BOB haha. Never know could happen.
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