ztect, because there is so little known, one should be even more careful. But from what is "known", TSIG before the formation of the new company had a burn rate of $5.4 MM for 9 months, which annualized gets this to $7.2 MM, more than the "original" forecast of $4 MM pretax profits originally expected from Affinity (when the forecast was $30 MM), which now, with a "forecast" of only $25 MM (and no longer any forecast of pre tax profits), makes the "current ongoing negative cash flow" at best $3.2 MM on a annual basis and possibly much more. Meaning, more funding will be required in a market environment not particularly friendly to any "dot.com.
Sure, just as we are going to see some DCB in other dot.com, you should expect some here as well, but based on what is known, as you said, it is very difficult, IMHO, to make a case for a capitalization of $60 MM or so. If you add to that the technical picture of a stock in which there must be thousands of investors waiting to get out, even if only "half whole", you have yourself ample supply (not just the floorless) of stock on any mini rally.
Zeev |
