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Consensus Earnings are for a loss of 20 cents this quarter, and a loss of 71 cents for the year, according to the Yahoos' WAVO Research Report here: quote.yahoo.com, where one analyst is reported as rating WAVO as "Strong Buy," two as "Moderate Buy." That's all.
The sales and earnings improvement is estimated to start next year, when only a 11 cent loss is expected by the 3 analysts now following this company. After that? We'll see how (if) the sales develop.
I attribute the softness in this development-stage company to delayed sales, but WAVO seems to be making deals with major players, listed at its Yahoo News link here: biz.yahoo.com; It is also reporting encouraging growth in corporate subscribers to Wavephore Newscast in a press release here: biz.yahoo.com, where now over 100,000 users are claimed. The corporate market may produce decent margins and easily collectible substantial accounts, if WAVO can produce the content.
Also encouraging is the confidence of six institutional investors led by an affiliate of Credit Suisse First Boston, who took down $24 million of preferred convertible shares, according to a press release here: biz.yahoo.com around July 24, for which WAVO is paying only 6% per annum. The proceeds are going for working capital and the acquisition of Paracel Online Systems. With only 16 million shares, that $24 million is about $1.50 per share.
I keep reminding myself of INTC's purchase of a substantial stake at about $8. It, and my even lower basis, help me sleep at night.
Also, this is not my only investment (smile).
~ Doug ~ (long WAVO below $8 cost basis) |
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