I've been excited about many stocks, but it looks like ELEC is truly a situation where I was the one "to get in at bottom." This makes me incredibly excited. It's easy to overlook some great situations in the OTC markets and I think that eLEC is a spectacular situation everyone has overlooked. Here is my take on the situation:
-Latest release: 59% growth for the quarter.
-The lines are growing at 10% per month. (24,000 additional lines this year!?)
-ATA Devices that will be tested in 25 retail stores in NY.
-2nd Quarter Revenues of $1.9 million, up 64% over Q2 2003.
-Highly efficient operation.
But what really gets me excited is that eLEC gains customers before any expenditures are made on assets. They make guaranteed money before investing in assets! In my opinion, at a 10% per month growth in lines, eLEC could well surpass 120% growth in revenues. This is a nice little niche market with solid operator. ELEC to go north of $1.00-$1.50?
Math: I figure ELEC is making, at this current moment, between $500-$600 in revenue per line. That translates into about $12,100,000 in revenues right now. And those are the numbers as of now. Imagine one year. Aside from the other costs of operations, marketing costs is a major expense which I calculate to be about $50-$60 per line. This company is growing and so continues to invest heavily in marketing. If we cut that marketing off right now, we would have a cash cow!
Let's be conservative and say that we reach 100% growth in 1 year. That means we'll have $24,200,000 in revenue in 1 year. That comes out to about $1.50 per share in revenue by next year! The company is trading at 25 cents right now. Let's say that we can only pull $0.10 per share in earnings from $1.50. At 10-15 times earnings the stock will be around $1.00 to a $1.50! Comments???
Thanks,
Crown |
