The True Power of SSWH…By; Sterling http://ragingbull.lycos.com/mboard/boards.cgi?board=CLB01219&read=1425
SSWH is a stock that is a lot more powerful than the investing community has yet been made aware of. They are within the infant stages of an untapped market. There is a huge demand for wheels to make one’s car look nice throughout the world, but we’ll just stick with US statistics. The company is also working on becoming listed on the OTCBB within this quarter.
According to Ward's Automotive, from the previous market analysis performed by North American new car sales in 2001, there were 17,472,378 and as of 2000 there were 221,475,173 registered vehicles. http://www.findarticles.com/cf_0/m0EIN/2004_Jan_15/112206729/p1/article.jhtml http://www.wardsauto.com/ http://wardsauto.com/reference_sample/index.htm
We will use these older year’s statistics because these numbers are very conservative compared to the huge increase in today’s numbers. Go to Google, Yahoo, or any search engine and look up numbers for US vehicles registered, new car sales, new cars production, and any other type of market for SSWH. You will see that the year 2000 numbers used above are very very conservative in nature.
The size of the market for their patented technology of applying glass to metal is tremendous. Again, SSWH only has an initial goal of capturing on 1% of its current market to obtain substantial revenue. Let’s examine further.
As of the year 2000, there were a total of 221,465,173 vehicles registered in the US. Again those numbers for today are significantly higher, but since these are the numbers SSWH used a while back, we will too to reflect the true power behind SSWH within their market.
For a good set of 4 rims, Sport Wheels, Inc. (SSWH) had informed me that their range of prices could be from $800 for a Ford Pinto to $8,000+ for something a bit more extravagant. The average consumer in the market for rims will usually pay $2,000 to $4,000 for a set of nice rims. We will again remain conservative in our numbers and we will assume that everybody has an old Ford Pinto and is only willing to pay $800 for their set of rims to spice up their car. The revenue potential would look as such from below:
Price of Rims x Registered Vehicles = Revenue Potential
$800 x 221,465,173 = Revenue Potential
$177,172,138,400 = Revenue Potential
This gives SSWH a potential untapped market for capturing $177.2 billion in revenues. Let's say that they were not as successful in marketing their wheels as they have already proved otherwise. But let's pretend a bit further. Let's say that they were only able to capture 1% of their market for registered vehicles alone.
Keep in mind that this is not including those new car vehicles that dealerships are going to have specialized for their customers that have not yet been bought or registered. This does not include those military vehicles. This does not include those trucking industry contacts through particular vendors. This does not include the professional sport teams. This does not include the college and university teams. This does not include the auto racing world. I think you get the point of the markets that SSWH are in coordination with that we are still excluding to remain even more conservative in our numbers.
These are only registered vehicles from your average consumer like you and I. This 1% of their market would equate to below:
1% (or .01) x $177,172,138,400 = Revenue potential from only 1% of its market
$1,771,721,384 = Revenue potential from only 1% of its market
The current OS for SSWH is 900,000,000 and from previous discussions with the company, it will be remaining as such for a while. Also, from talking with the company, I think that it is safe to use the 25% rule for calculating expenses as a percentage of revenue. We’ll go one step further and double that to use the 50% rule for calculating expenses.To keep the math simple, we’ll round the above revenue potential from only 1% of its market to the nearest tenth to equate to $1.8 billion.
Now we can conclude the following potentially fundamental value:
$1.8 billion = Revenue potential from only 1% of its market
900,000,000 = Outstanding Shares (OS)
50% of $1.8 billion = Expenses
Revenues – Expenses = Income
$1,800,000,000 – $900,000,000 = Income
$9,000,000,000 = Income
Income ÷ OS = EPS
$900,000,000 ÷ 900,000,000 = EPS
$1.00 = EPS
We use 12 as a conservative PE Ratio:
$1.00 x 12 = $12.00 per share
Yes, $12.00 per share seems a bit unreal to some so I even broke it down a bit further for an even more worse case scenario. If SSWH were only to achieve capturing 1% of the 1% market mentioned above, this would still put SSWH at a share price of .12 cents.
I had done these numbers in my head from doing some quick math which is how I had derived at a no lower than SSWH share price of .12 cents once they start confirming their orders that have already been requested in some PRs for the public. Many already know what is going on which is why many of us are and will continue buying. I am only presenting these thoughts from facts provided within the market for SSWH. This is all on the surmise of annual income from SSWH capturing 1% of the 1% market mentioned above per year. The market is there and yet still remains untapped.
This was from remaining very conservative in nature throughout the numbers used for calculation purposes while even saying that SSWH will have expense of $900 million which I doubt very seriously. Again, if you research the 221,475,173 registered vehicles for year 2000, you would see that there was much to include that would have allowed us to use a higher number.
Again, we had remain conservative in our numbers and assumed that everybody has an old Ford Pinto and is only willing to pay $800 for their set of rims to spice up their car.
Throw some factual numbers in there like people average payment for a set of rims being $2,000. Or they launch a huge marketing campaign as they are currently doing and capture professional sport teams, college and university teams, the auto racing world, the military, the trucking industry, the new car industry, and other markets that are willing to pay $8,000+ for their rims. This is more powerful than many of us current investors have yet been able to realize.
I think many already appreciate SSWH and such feelings will continue to grow as the share price begins to appreciate. These are only my “theories” as to how I see that SSWH is converting such into “facts.” We are nearing prosperity with SSWH!
Sterling
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May God Bless All.
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