This has nothing to do with your claims. What it has to do with is whether the market for the product turns out to be as big as many of us expected. I still think it is. But if there only turn out to 20M or 30M subscribers for the industry, it is not enough to make it pay.
But, earlier you stated..
I think many people just don't comprehend the cost structure for this company. Those who have studied it in some depth all seem to conclude the same thing: It is a cash cow in the making. The variable costs are low and the market potential is huge -- 10M, 20M, or many more subs. Assuming 300M shares outstanding and a PE of 20, a stock price of 60 could be expected at earnings of a billion dollars. To earn a billion, XM needs 18M-20M subs.
LOL!! From Billions in profit to "not enough to make it pay". Now that is a "popsicle stand" Yeap! Some people just don't comprehend the cost structure of this company. IT'S A CASH COW IN THE MAKING. LOL!!
I love this one from early 2003.
Perhaps you're not looking at the same business I am. These people have been within +/- 5% of their sub targets every quarter. Sub growth has been phenomenal but precisely on target. The financing package clearly provided the cash needed to get to breakeven, SO LONG AS sub targets are met.
Well, your sub-targets were on target but the popsicle's at the popsicle stand have been melting all over the place. Yeap.. You were fully funded in early 2003, and your fully funded now. The only problem is. 100's of millions of dollars have melted at the popsicle stand.
I could care less about CFBE. A business can "cash flow" from now on, but if it isn't turning a GAAP profit it is not sustainable. Period.
You've been going on and on about CFBE for years now. First it was in early 04, then late 04, then 05, then early 06 followed by late 06. That's what happens with these popsicle stands. By the time you get your popsicle unwrapped, it is melted all over the place.
Suddenly, you don't care about it, and now turn your attention to GAAP metrics.
XM's fully diluted sharecount has not increased substantially from the day of its refinancing -- it stands today at well under 350M shares,
From about 97 million to about 340 million. I guess 300% is not substantial?? Well, when you are dealing with a popsicle stand. Numbers like 300% are not that big..
And so it goes,
PCSTEL |
