Hi Michael,
Regarding the $1.50 EPS for this year. Let's assume the fiscal year started in January (this may or may not be correct).
CSIN has $220,000 wagered in May, which was CSIN's first month of operations, and $300,000 in June.
So for half the fiscal year they have $520,000 in wagering revenues. I think there take is about 15%. That's $78,000 in real revenues from which expenses come out of.
With 6.1 million shares outstanding, they will need $9,150,000 in Net Income to end up with the $1.50 EPS. That's Net Income, not Revenues, or Wagering Revenues.
Now let's say that all of the $78,000 that they took in in the past couple of months is profit. They still need approximately $9,070,000 in profit.
If their take is 15% on amounts wagered, then they need $60,000,000 in wagering revenues over the next 6 months with NO EXPENSES.
So they need $10,000,000 per month for each of the next 6 months, WITH NO EXPENSES, to achieve $1.50 EPS for the year.
For each of the next 6 months they will have to do 20 times better than the past two months combined.
What do you think.
Mike |
