gross profit is 25%
lower range $540M + $540M = $1.1Billion x 25% = $280M
That is if you are speaking conservatively,
if they grow and appoint new distributors then $300M
$300M / 22M shares = $1.36 EPS
net profit / year = $150M "
You're exaggerating DMND's net profit by a factor of 2 to 3.
2011: net profit = 50M
2012: projected np = 3.45x22 = 75M
The 2012 income will only come down from the current projection due to higher interest rates for violating debt covenant with accounting anomalies.
and 1 more thing... lets keep the conversations serious so we can all learn... how do u come up with 150 million profit when they showed 50 million net income in their Sept. 2011 annual report? and this BEFORE NUMBERS need to be adjusted downwards... so even with growth in 2012 u will be verry lucky to get to 40 million
the point is that u DONT want the pringles deal. i agree with u except for ur profit u are way way off.. on teh 44 dollars even might be conservative but profit no no way and thats whats holding the stock i think ..ive become less bullish on profits but bullish on teh asset play
in summary now ( without Pringles)
2012 revenues expected 1.25 debt 530 million
with pringles 2.4 billion revenue 1.6 billion debt
but o/s 85 millin shares
when u calculate teh earnings per share look out and not taking in the probable higher cost of financing
CONCLUSION... no thx for both parties concerned ...
no reveues in 2012 with the kettle chips would be about 1.2 billion on 22 million shares o/s ..
now WHy w so double sales but now u would have 85 million shares o/s not GOOD trust me and unbearable balance sheet.. now it s okay but with pringles ajoke!!