I'm going in big into this thing.... actually looks very solid.
YES, the stock was $15 just last March, to see a graph, go here:
fast.quote.com
then, right underneath where it says "Symbol" click on the hypertext AVIC.
Important note: The stock is going down due to share dilution- they have been issuing shares to finance some short term deals including THREE very expensive financial consulting relationships. (They are paying Merrill half a million dollars alone).
The stock boggles my mind. I have a hard time these Reaganites are all getting involved in what SHOULD be a very cheesey company. Only their presence makes it not cheesey- you know they're going to come through. AVIC has a very nasty past (it was most recently a mining company, then some sort of tv company.)
QUESTION: Why would these Reagan people join with a company like this?
Since they have, THIS COULD BE A TEN-BAGGER. According to the press release dated Sept 25, 1996, their first network goes on-line next month, so here come the revenues.
The size of the network though, hugely concerns me though- it only supports 70,000 in a city of 50 million! They only expect to get to 200,000 subscibers by the year 2000! This doesn't sound good at all! What am I missing?? If AVIC is lucky enough to take back revenues of $3.50 per month per subscriber (becuase they have to split with their Chinese partner) this only means revenue of $735,000 per quarter- hardly enough to support a $3 stock price!?! What am I missing?!
Any help would be appreciated,
kev |
