I am looking for feed back on my analysis of future earnings potential for Gro. Any legit comments and/or other analysis is appreciated. I think the most important question for the up coming earnings is how many acres is GRO growing seed corn on. They did mention they now have double the acres, but it was not clear how much is for grass and how much for corn. This analysis is based on the 5400 of seed corn.
Gro has 5400 acres available for the purpose of growing seed corn
118,584,000,000/80,000 seeds per bag=1,482,300 bags of seed
1,482,000 bags x $200 a bag=$296,400,000 dollars
Assume 15% profit or $44,460,000
With 56,000,000 ADR earnings per share of $0.79.
with a 10 PE future stock price of $8 based just on seed sales.
Big question is how long will it take to utilize all 5400 acres to grow seed corn?
they lost US$57.3 million in P3A
they lost US$6.5 million in saperation with Ganxin
These two alone, not to mention other cost, is 63.8 million
Look at how much they bought in from china seeds business in 6 months, a pitty number 5 million, -- profit ? who knows.
now you dream $296,400,000 dollars in revenue and $44,460,000 profit ? yea, I have a dream... Mr. Martin Luther King said this 50 years ago.
Yeah, monsanto has 540000 acres available, so $29,640,000,000 dollars revenue and $4,446,000,000 on seed business alone ! hahahaha