robotsander.com | Investment


Investment

In connection with the start of production and the need for working capital the company "Robosander Corp." sells part of its shares. Any natural or legal person has the right to buy these shares

For the potential investor is the option when nested money will bring maximum profit. This is supported by the following facts. The time of development of the invention and the creation of production sample is completed, and soon will begin production and will go profits. On the other hand the company's value, and therefore its shares undervalued, since it has not yet entered the stock market. No doubt that the robot will be in demand, considering the huge amount of advantages over existing equipment : as much as 17 benefits are listed in the "Advantages of robot”. Finally, competition is completely absent, as robots which begins to release the company does not have analogues in the world, and thanks to the patent protection of this situation will continue for another 20 years (period of validity of the patent). The estimated profit from dividends is 140% as the calculation show below.

Initial data* for calculation of dividends on shares of the company.

1. Number of potential buyers ............................... .........................50,000 companies

2. Competitors on the market for this product .................................None

3. Annual number of buyers (2% of potential buyers)..........................1,000 companies

4. Cost price of 1 robot set .......................................... .........................$ 10,000

5. Warranty service cost…………………………………………...$ 1,000

6. Selling price (by the company) ............................ ....................$ 39,500

7. Expenditures of the company (annually) ...................................$ 500,000

8. Tax on profit…………………………………………………….35%

9. Total number of shares of the company ................................ ........200 shares

10. The price per share (1 share) at the present time.........................$ 100,000

Calculation of dividends.

On the basis of the provided data and after performing simple arithmetic, we have:

  • Net annual income of the company per year....................................$ 28,000,000
  • Annual income per share in monetary terms ..................................$ 140,000
  • Annual income per 1 share, percentage-wise ......................................140 %

* Substantiation of the value of the initial data – see below.

Substantiation of the initial data.

All initial data values, quoted in the process of calculation of the dividends, have their substantiation. This is the statistical data, the results of market research, calculations, which include the use of conventional standards. This section includes descriptions of each numbered item:

1. Amount of potential buyers is calculated on the basis of the official statistical information of the company "Info USA", according to which there are 18,330 businesses in the United States specializing in "Floor Laying, Refinishing & Resurfacing". It is safe to assume that throughout the rest of the world, which includes Canada, the UK, Germany, France, Australia and other countries, the amount of similar businesses is 2-3 times higher. Thus, the number 50,000 is also quite reasonable.

2. The fact that there are no competitors producing anything like that in the world is demonstrated by research on the internet and the unanimous opinion of equipment users in the industry.

3. Regarding real buyers, we can safely assume that out of every 100 companies a minimum of 2 companies would purchase such a necessary professional machine, which is superior to any existing one. When others see its effectiveness, the amount of those willing to buy it will significantly increase. Therefore, the number 2%, i.e. 2 out of every 100, is quite reasonable.

4. Cost price is determined on the basis of a calculation which includes such key costs as materials, components, labor, etc. In total, these costs come to approximately this amount.

5. Warranty service costs for the sophisticated devices to which include robot is normally 10% of the cost price.

6. Selling price of the robot is determined as a derivative of its cost. Usually the selling price of the product is 3 - 5 times higher than cost price. In this case it is 3.9 times higher, i.e. well within the range. On the other hand, a question may arise whether a buyer will be interested in such an acquisition.
The answer is an "yes", because, first of all, the robot is a professional machine which brings considerable income, and secondly it has a lot of advantages over existing equipment (see section "Robot's advantage"), which gives it a significant competitive advantage. Finally, a survey among potential buyers also showed that such a price is acceptable.

7. For prospective staff of 8 - 10 people this amount should be enough.

8. Tax on profit of the company in the US is 35%.

9. The number of 200 shares determined by incorporation. This number of the corporation receives the registration and keeps it intact before entering the stock market in accordance with US law.

10. The selling price of the shares at the moment $ 100.000 USD per share is 3 times lower for the purpose of investment attractiveness. This shows the calculation below. Cost of Robosander Corp "consists of two components:

The price of a patent which classified as "highest difficulty" is very large in size (in its composition contains 32 of the invention), the cost is approximately $ 10.000.000 USD.

Working out and bring this very big difficult process from invention to the sample is ready for production is approximately $ 50,000,000 USD.

Thus the value of the company amounts to $ 60,000,000 USD, hence the price per share (a total of 200) must be equal to $ 300,000 USD.