[ Huge GTE Contract Announced ]
I'm sure you've all read the news by now. This is great! The stock will surely gap up in the morning. In case you missed it, let me quote the best part:
"Collectively the two new trials involve 70 participants, including 30 at Duke University and 40 at Purdue University. Both trials utilize ADSL/DMT modems from Amati and one other vendor's ADSL modem."
GTE didn't say that the 70 participants would be split evenly between AMTX and the "other vendor". If we're lucky, AMTX could get 40 of the 70, which is MORE than two participants per million shares of stock. Wow.
To be conservative, let's assume we get only 35 participants. How much does the market normally value a student surfing the web? A million dollars per surfer? Thus, we can expect AMTX's market cap to increase $35 million, or $1.85 per share. And, if we assume these students have a roommate, also valued at $1 million each, we can expect a jump of at least $3.70 per share.
Finally, I don't want to get too optimistic, but let's calculate what this might do for sales. At $1,000 per modem, this deal translates into sales per share of $0.00185. Folks, we're going to retire off of this one. Contratulations to everyone who had the sense to "buy the rumor". |
