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REEDS, Inc. Message Board

  • fryan234 fryan234 Dec 14, 2012 1:59 PM Flag

    Cheap at $5.23

    market cap - $63.0 million

    Sales from first 3 quarters: $22.258m

    Sales from 2012, with 15% growth rate applied to Q4 ($7.28m in Q4 2011 -- $8.37m) = $30.628m

    Add a 2x multiplier from sales = $61.256 (without any kombucha)

    Add in potential kombucha sales of $5-15m in 2013, plus growth from branded, start-up expenses from kombucha predicted to decrease after this Q4, add in profitability, add in buy-out potential, give it a 2x multiplier...

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    • It's the REED December effect. Last year the SP was slammed by tax loss selling, this year it's tax gain selling. $5 in December 2012 is almost as good a buy as $1.10 in December 2011. You're right, $60 million market cap is ridiculously low. Show me another company with this kind of top line growth selling for (less than) 2x revenue and I'll eat my toothbrush.

      I only wish I had the money to buy more shares because sellers are giving away the growth potential as well as a portion of current value for nothing.

      $10-$15 in 6 months, $25-$30+ in 2 years. Take it to the bank.

      Sentiment: Strong Buy

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