Some working numbers for ONTV??? Well, I'm going to throw out some highly speculative numbers, since we all want to estimate the value of this RONCO-ONTV deal. You can glean some interesting figures from the numbers found in:
communities.msn.com
RONCO ramped up their production of rotisserie grills to 20,000 units as of last November. Popeil claims they will net 2 million a week, so roughly $100 margin per unit...perhaps they will increased production even more. Anyway, they sell for 159.00 at 20,000 units so that's 3.18 million a week or $165,000,000 a year gross sales. Let's just assume that their other products combined sell roughly the same amount. So we arrive at a sales figure of $330,000,000.
Ok, so if 25% of that is processed through the internet, that comes out to roughly $82,000,000. Perhaps this is rather high, but the Financial Post article did state that they sold more in the past two weeks than all last year. Internet sales are clearly increasing over there, so let's just work with these figures. We have no idea how much of this revenue ONTV will share, but let's just say 5-15%. That will give ONTV 4.1 -12.3 million from web sales. Since all they do is set up the web site and have low overhead, let's just say that is their net profit. Bascially we are dealing with a company that can potentially generate 80million in sales and net around 5-10million a year. Not bad. Can a lot of NASDAQ e-commerce companies match this figure??
What would be the market cap for the numbers I threw out? I'm not an accountant so I wonder if anybody else can do the math involved. I think we can then extrapolate what future earnings might be based on industry predictions.
I can count the $$$$ coming our way already..... |
