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Microcap & Penny Stocks : The STNX Investor

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To: M. Scott Mayer who wrote (25)11/30/1996 12:31:00 AM
From: Greg Scudder   of 298
 
I feel the $400 net number would be a good estimate in my opinion based on expenses including taxes and income based on other income like video conferencing, stock quotes, and other products sold. But we must remember that although income is realized in the year it is shipped, expenses will be spread out over the four years ($100 income each year) for internet access, customer service and so forth.

But I think one source of income is being overlooked here. With this tremendous income upfront from the sales of the contracts, Startronix will be able to make interest income from this cash in advance. Of course theres the cost of producing the Starscreens and first year expenses.

Here's my question to M. Scott Mayer. What will be done with this extra cash and what rate could you estimate? Was this type of interest income figured in to your $400 estimate? Assuming I'm correct there will be this excess cash earning more money from the sale of the contracts.

Hypothetical Example:
8% of $1800 (2800-1000, 1000 being an estimate cost of the Starscreen and other first year expenses per unit) is roughly $160-$180 interest income for the first year. Using $160 in interest income and the first 16,000 FP = 2.5 million in interest income.

Thanks

Greg
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