VEG new 52 week high today
VEG touched an intra day high today .77
some back of the napkin numbers from gogogreen on SH
The company original yields projection is 650,000 pounds per week. Later they announced the yield exceeded the projections. In the 10/26 press release, On both Oct. 22 and 23, Captiva produced over 130,000 pounds per day equal to 910,000 pounds per week. We take average, it is 780,000 pounds per week. 780,000 x 53 weeks = 41.3 Million pounds per year. From 2014 captiva’s fund raising slide, they can sell $1.18 for each pound and 20% net profit. So the revenue is at least $48.73 Million and profit about $10million US dollars. The acres of imperial valley farm is 1.5x larger than Arizona. The yields should be 1.5x and there are overlap between transitions. So we may possibly see much higher revenue. Even with conservative 10 million net profit and P/E = 20 , the company worths over US $200M which is CAD $274 Million. Assume, outstanding shares is 85M. We should see at least $3.22 CAD by Sep 2016. Once the 1st profit number is out, the big funds will be in. There are very little public organic farming companies. Organic food is future. Look at The other big organic company WhiteWave Foods Company (WWAV) has PE =43. Captiva has all they need to expand. They can easily expand the farms 2x in 2016. We may see $5 easily in 2016 and $10 in 2017. Captiva is traded as penny stock but has real and strong business.
