PPS - you think this isn't why people were falling all over themselves to get in on the IPO and secondary offerings at $12? They certainly weren't buying 20 million shares hoping Q3 '11 would meet "expectations".
I'm ASSUMING the entire scenario. There is no way to predict the future. IF they hit 2012 numbers they will be generating so much cash there will never be a need to issue any shares. IF they continue growing at 100% for 2013 no matter how many shares are added through options etc. it will be irrelevant since the earnings will be huge and the stock price will reflect it in a big way.
The point is just to illustrate the phenomenal potential. I'm in it for the 2 year time frame and if it comes anywhere close to this scenario I will be retiring in comfort.
No way under ANY scenario they won't continue with extremely healthy growth. They have access to 50,000 locations with their current list of customers - all they have to do is execute the growth plan and get the water systems set up in the locations. They are in 17,000 locations now and had 115% growth in water sales this quarter. They are adding an average of 5,000 locations per year plus the new water dispensers and soda machine - not to mention the Primo Pure Ice product. Impressive growth is inevitable and their SG&A costs should stay pretty constant. That means sales growth gets levered immediately to the bottom line at the gross margin level since their are no incremental SG&A costs. Profit mania ensues
Buying shares at these prices and waiting it out is about as sure thing as you ever get in the stock market. Billy Prim is a mover and they are executing very well with a product that is in constant demand at a very reasonable price and rapid growth virtually assured for the next few years.