Aug. 5 at 10:57 PM
$VIVK
Given the types of crude marketing agreements they’ve announced and what similar physical marketers often earn, I think a 2% gross margin is a reasonable starting assumption.
That would imply approximately:
* Annual revenue recognized: likely close to the
$1.5 billion of commercial activity (depending on accounting treatment).
* Gross profit: ~
$30 million/year
* Net income: ~
$12–18 million/year
Why this matters for the stock
If Vivakor can actually produce
$15 million or more in annual earnings, and the market values it at a modest 10× earnings multiple, the company could justify roughly a
$150 million market capitalization.
With an estimated 13–15 million shares outstanding (subject to future conversions or issuances), that would imply a stock price in the neighborhood of:
*
$10–12/share at a
$150 million market cap.
*
$15–20/share if earnings prove stronger or the market awards a higher multiple.
