***¶*** SEVU: IMPORTANT CONSIDERATIONS on the Quality of GROWTH....
Companies whose Revenue and Earnings grow fast, say 200 to 300% per Year, usually do so through acquisitions... The drawback is Dilution of outstanding shares and/or Cash expenditure and accumulation of non-tangible Assets, such as GoodWill that has to be amortized over a period of time, thus reducing Net Earnings....
SEVU's Revenue/Orders GROWTH of 1100% so far this Year is REMARKABLE in that it's all INTERNALLY Derived... So there is minimum Dilution and no accumulation of useless intangible Assets...
*** SEVU DUE DILIGENCE (up-dated) ****
SEVU has already experienced around 1100% GROWTH in Sales/Revenue AND Orders in the first 11 Months of its 2000 Fiscal Year, compared to $1 Million in Revenue, last year...
biz.yahoo.com
biz.yahoo.com
1) First 3 Quarters *Sales/Revenue and pending Orders amounted to about $6 million, while Revenue from shipped Goods came to approximately $4,440,000...
Period Sales/Revenue Orders
1st Quarter: $421,000
2nd Quarter: $1,520,000
3rd Quarter: $2,500,000 $1,500,000+
4th to 11/27/00: $6,000,000+
Rounded TOTAL: $4,440,000 $7,500,000+
Please, note the Steady Sales/Revenue and Orders PROGRESSION towards the revised Goal of $23 Million in Sales/Revenue and Orders for the whole of 2000!
2) *Sales/Revenue and Orders are ramping up giving the following approximate aggregate results for year 2000 until 27th November....
$4,440,000 + $7,500,000 = $11,940,000
So, SEVU needs to Book another $11 Million in Sales and/or Orders, to reach its Year 2000 Target, which may or may not be achievable... In the meantime, compared to 1999, it has managed an 1100% increase and counting, entirely due to Internal Growth...
3) Highlights from 3rd Quarter 10Q.....
ragingbull.altavista.com
*SALES/REVENUE vs ORDERS: for the avoidance of any potential confusion, Revenue is recognized upon Shipping the Goods... However, since the Terms Revenue and Sales are often used interchangeably, for Goods sold in a Quarter for shipping into the following Quarter, the word Orders will be employed... So, over $1.5 Million of Orders received in the 3rd Quarter should become Revenue in the 4th....
Disclaimer: This is my interpretation of the recent filings and PR's and readers are advised to draw their own conclusions from the material available, including the SEC Filings... Extensive Due Diligence should be carried out: invest only what you can afford to lose.....
JMHO, F. Goelo + + + |
