This is what I have been able to gleen thus far.
1) The cost to support a user in video bandwidth dowloads per month is $40.00
2) During the $40.00 consumption of bandwidth, the user hears $160.00 worth of advertising
3) Net return per user is $120.00 per month
4) MyCityRadios target for the next few months has already been exceeded and is growing daily, but we will base it on their conservative targets of 4000 users.
5) 4000 users * $120.00 (160-40)= $640,000 per month revenue
6) Assuming $140,000 in wages rent and expenses and you get $500,000 per month return EBITDA
7) $500,000 * 12 = $6,000,000 per year in revenues
Now if WIBN/MyCityRadio secures 20 radio stations in the next 3 months
8) 20* $6,000,000= $120,000,000 per year. However, I have actually subtracted for the bricks and mortar building and wages 20 more times than I should have. Remember $5,000,000 per year is subtracting out wages,ret etc. Where the increase in radio stations does not result in an increase in buildings....we are operating in Cyber-space, we have only one building and wages are paid out of the first site revenues.
9) $120,000,000 per year is $2.00 per share even if we esculate to 60,000,000 Fully dilluted.
10) The multiple for this industry is 12-15 which would equate to a shareprice of $24 to $30.00
11) But lets just say I am absolutely full of BS.....and discount everything by a multiple of 12-15.
12) The stock will still be worth $2.00-3.00 per share
I have run endless calculations on this and no matter how I do it, it comes out a winner. ie> Lets assume only 10 stations but 8000 users......the same numbers appear. Lets assume New York City where we could have 100,000 users? We only need New York thats it!!
Mr. Mackin believes that achieving $200,000,000 is possible in the next two years. I pooh-poohed that and then started running some numbers myself.
You try any realistic combo you want....He is right!
Comments?
the Chief |
