Good question...
24601, you pose a quesiton that gets at the heart of the risk in TSQD: Dilution of TSQD's holding by printing of more paper. I admit, this is what concerns me. But from my view, if the certainties outweigh the uncertainties, the stock is OK with me. I have given myself a very conservative bottom line price target of $7.45. TSQD may not go to the moon and it may not have the astronomical potentional of WAVX, but I believe its rewards are more predictable than a lot of other Internet stocks.
I guess another way to go at it is to compare TSQD valuations to its Internet stock peers. If you look at crap like SEEK...hell, even AMZN, you see astronomical valuations and a lot more shares than DR or TSQD. Look at that piece of crap ONSL too. You could argue that all the INternet stocks are overvalued, but by comparison, TSQD does look admittedly cheap.
Better yet, look at WAVX (**not** a piece of crap). Over 20 million shares, a lot of backdoor registrations, living hand to mouth and 10 years of no revenues except for licensing fees. A market cap of over 80 million with annual operational revenues counted in the thousands. The price to sales has to be something like over 100. DR has the same number of shares as WAVX, but at current rates they will have revneues of 18 million this year. Not bad for less than two years of operation.
Anyway, that's my take. I think the regulars here know the risks involved. At least I hope so!
DocStone |
