THIS IS THE WAY I PERCEIVE THE eVWAP BUSINESS AND IT'S ROAD TO PROFITABILITY:
this week alone (a holiday week I might add) has seen in excess of 11 million revenue shares for just the first 3 days. Going by the estimate of 1-1.5 cents per share (according to the best estimates we have at the moment) and staying on the low end of 1 cent per share, that equals $110,000 in revenue for just 3 days. You can see where I am going here? When the players on vacation get back to the market mid September, and market volume returns to normal trading size I expect that eVWAP volume will make yet another sizable increase. 2.5 million x2 per day on average will be an average 110 million shares a month (based on average 22 trading days per month) which equals 1.1 million dollars in revenue based on the very low end of 1 cent per share. That is the burn rate for ASTN. It is VERY conceivable that we see this type of volume by October. If that were the case, ASTN's need for cash would all but disappear (not entirely true, they will still need some, but not the massive dilution everyone keeps saying).
So what will happen when the dilution does not happen, but the market has already priced it in? And, in addition, what will happen when the revenues begin to exceed operating costs (I believe they call that a profit)? These are scenarios that I believe are LIKELY to occur by October. In my humble opinion, the stock will trade somewhere between 1.50-2$ at that time, and higher from there as the business plan continues to develop. I like the stock at this price (60 cents). I think the risk/reward is well worth it, and I added some stock yesterday. See you in a month to see how it played out. Cheers. |
