StockGuru.com Gives Five Reasons UVFT Should be Trading Up 500% From Current Levels
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UV Flu Technologies, Inc. (OTCQB: UVFT)
Five Reasons UVFT Should be Trading Up 500% From Current Levels
When I say that UV Flu Technologies (UVFT) is “undervalued,” I really do mean it. I have been here right at ten years covering smallcap companies. Unlike others that typically put out a headline that says “this stock is going way up” every time they meet a new Company, I only use a headline like the one above when two things are true: One, I believe it. Two, I can prove why I think it is true. The market does not do always do what analysts say it is going to do, nor do individual stocks do what I say they are going to do. But, look at the rationale in my five reasons. For the past two days I have shown you how the insiders are buying. I am not going to include that as a reason to buy. I am now going to show you WHY they are buying (in my opinion). THE FIVE REASONS:
Reason one: Let`s talk first about the UV-400. This product is clearly alone in its ability to take contaminants out of the air. It is not just another air purifier. It is a unique air purifier that uses a kill chamber with three highly powerful UV lamps. That`s a total of 48 inches of high intensity UV lamps that can kill and reduce smoke, odors and even toxic chemicals.
Reason Two: FDA Clearance – It`s the ONLY FDA cleared device which kills over 99% of airborne bacteria, while reducing all types of allergens and indoor air pollution. Who else can say that There are hundreds of “devices” on the market that are called “air purifiers.” No other can say they have the FDA clearance, killing over 99% as stated above.
Reason Three: The Huge Market for Great Air Purifiers is Proven. Don`t forget that “The Ionic Breeze” accounted for “30% to 35%” of the The Sharper Images sales at one time and as much as 40% of that company`s profits ( source article ). Yes, that was a device that had its flaws, and those flaws ultimately contributed to the bankruptcy of The Sharper Image. The problems The Ionic Breeze suffered from are what`s different with the UV-400. Where The Ionic Breeze went wrong, the UV-400 is done right. That`s why this product is gaining so much traction now. Of course, The Ionic Breeze showed the potential of a single product from one company in this market. I believe the UV-400 has so much more to offer, thus giving it a unique competitive advantage. Look at yesterday`s news release and you can see the plan for expansion. They see the potential. They know how to market the product.
Reason Four: There is a margin already in this product. Every unit that UVFT sells they sell above the manufacturing costs. Now, that seems like a silly thing to point out. Who would ever sell below cost, right It`s importnat to note that as a product is developed and brought to market, one often sees products initially sold for less than cost. This is done to build demand. The UV-400 has demand, and that demand is very promising. On top of that, the UVFT has ample opportunities to lower the unit cost and further increase the margin.
Reason Five: Simple Math. When I say I see this stock as a candidate to move up 500%, let`s do the math and see if I am correct. According to OTC Markets they have less than 46 millions shares outstanding (as of August 7, 2012). According to their most recent filings, they have authorized shares of 75 million. The Company amended its Articles of Incorporation in October moving from 50 million authorized shares to 75 million authorized shares. While this may seem like a “negative” to those that don`t understand smallcap stocks, it is important to understand that this is a very modest increase. Most times you see a smallcap company go from 50 million to half a billion. The Company is not doing that. Like I said above the insiders are buying, and that continues even through the latest Form 4 dated December 6, 2012. The Company defined itself in its August 10Q (for period ending June 30, 2012) as a “development stage company.” With the sales now happening, that`s changing. It`s the sales that will take the investments they have made and begin to bring in greater revenue than ever before. As they make money on a per piece basis, each additional sale will bring them closer to turning this around. When I say “turn-around” we are not talking about a company that has failed once, and it is trying to get back on its feet. As a development stage company, UVFT is succeeding. With the plan they laid out yesterday ( see it here ), they are showing their very real value. Let`s turn this math into a simple formula.
Assumption One : Let`s say the Company has 50 million shares in the float. (The best information is 45,209,238 million as of August 7th, but one must always assume that figure is now higher.)
Assumption Two: Let`s look a year or so ahead: Let`s say the Company sells enough units to generate just ten million in revenue. (This would require selling maybe 45,000 units, however, we do not know an exact wholesale cost and sales price, so this is my estimate.) If the two assumptions eventually become true, that`s a 10 cent per share revenue figure. Some say that ten times revenues make for a fair valuation of a market cap in a publicly traded company. Many times it is far higher. But 10 times revenue is generally a fair figure for a publicly traded company. This is a development stage company that is fully reporting, however it is a smallcap company. So let`s cut that number in half and say just five times revenue based on my assumptions. If my assumptions are correct and the UVFT does hit this revenue figure then it is reasonable to suggest that the stock is undervalued in the intermediate and long term by no less than 500%. Even short term it is truly undervalued. That`s why I like it so much. Now – although I have rarely ever laid out an argument like this regarding valuation, I think it is justified here. I do not suggest that you are going to see the stock rush up and maintain that price. It takes time. You should do your own due diligence. Investigate this for yourself. Look it all up. Buy a UV-400 and see the quality of this product.
MORE INFORMATION ON THE WEB: http://www.uvflutech.com http://www.rxair.com Groupon Page About the UV400 UVFT on Facebook CONTACT THE COMPANY:
UV Flu Technologies , Inc.
Investor Information:
Toll-Free: 1-877-358-5545 (FLU-KILL)
UV Flu Technologies North Bay Resources Vuzix Corporation About StockGuru: The original service that has become StockGuru started in the late `90`s. At first if was our publisher sharing picks with his friends. Then it grew. Then it became a formal list in 2001. In 2002 it became a web site. In 2003 it became StockGuru. READ ALL ABOUT IT HERE . . Contact StockGuru: P: 469-358-5200 F: 214-975-1238 Publisher@StockGuru.com
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