Hi-Tech is building Tomorrow's World Today. Welcome to the 21st century.
AFUND Revised EPS Projections for IHI: 9/16/05/2004
We have included the following in our latest EPS projections:
(1) Potential share dilution from past private placement financing: 105 million to a potential 133.5 million IHI shares outstanding.
(2) All IHI JV factories will be larger "double factories" increasing from 62K to 100K sq feet.
(3) The price of IHI JV factories increased to $18 Million (16.5M plus 1.5M license fee) in 2004.
(4) Some initial product orders may be bid at 10%-15% discount to market.
(5) US Dollar weakness and Canadian Dollar strength in H2 2004 and 2005.
There is an open question on how profitable IHI factories will be. In the past, most potential Joint-Venture (JV) partners believed they would earn back their factory investment within 3 years! Company figures are conservative and suggest a 20% gross profit operating margin. However, I believe $6 square foot or more gross profit is obtainable, especially in Europe and the Middle East. A full capacity production factory may produce 40,000 square feet of panels per day. Finally, I don't believe IHI factories will be operating only 250 days in most countries, etc.
IHI's 5 year business plan is to build a total of 10 factories by 2010. My estimate is 15, 50% higher than the Company's. Our internal price projections for IHI are for a three year possible target of $30+. To compare, stocks like AOL or Microsoft in a comparable time period sold for over $3500; while stocks like Dell or Yahoo reached much greater heights in less time. We find IHI's story equally compelling.
Assumptions include IHI continuing to progress forward without undue delay as outlined in its latest business plan. Astrologically this is possible. Time will tell if this remains just an astrological probability, or whether the Bermuda chart potential materially manifests as I have plenty of reasons to both hope and expect.
Nonetheless, I continue to keep my wine cellar ready to be stocked with champagne presents from clients and friends when IHI stock reaches $30. Several long time shareholders unilaterally reduced their offer to $10, while some friends, family members and clients have already sent me Dom Perignon in anticipation of this IHI milestone. Furthermore, should I run out of space, Roger Rached, president of IHI, has kindly offered to expand it for me, using IHI construction!Return to PART XIX: 2004 IS FINALLY TIME FOR IHI (Coming Soon)
PART I: IHI 98
PART II: IHI FAQ
PART III: IHI HOROSCOPES
PART IV: IHI BC HG SHOW 99
PART V: IHI 99
PART VI: IHI CORRESPONDENCE
PART VII: IHI LUXEMBOURG
PART VIII: IHI SUMMER PROGRESS
PART IX: MORE IHI Q & A
PART X: IHI Story, Part X
PART XI: IHI'S 3 VIRTUES
PART XII: LAST IHI POST
PART XIII: IHI COUNTDOWN
PART XIV: IHI COUNTDOWN PART II
PART XV: IHI COUNTDOWN PART III
PART XVI: IHI BELIEVE IT OR NOT
PART XVII: IT'S TIME FOR IHI
PART XVIII: 2004 IS FINALLY TIME FOR IHI
PART XIX: 2004 IS REALLY TIME FOR IHI
|IHI WEB SITE|
|email THE ASTROLOGERS FUND|
|Return To Main Menu|