Jopawa, I am still here as well. I remain optimistic of the company's progress. My recent conversation with my sources though show that the production of the digital hearing aid has been rescheduled to April, instead of the January date I heard from another (I guess less reliable) source. Apparently, the President of Starkey is quite excited by the digital hearing aid as well, and as of 1997, Starkey became the world's largest manufacturer of hearing aids, selling over 1 million units last year. With that number, they have overtaken Siemen's, which not by coincidence is also prepared to go out with their own digital version.
Also, official Wall Street coverage is now "on line." Investment research from both Zack's and Baseline show that two analysts are covering QSound Labs, one with a Strong Buy, and another with a Moderate Buy. The average projected EPS is for $0.14 for 1998, for an 800% growth in EPS over 1997. This year will be QSound's first profitable year, and with the DVD market expected to gain momentum, QSound will also be there to take advantage of the expanding opportunities in that market as well. Also, the 1 million unit figure for Starkey is pretty nice to hear, considering that QSound is expected to get $50 in royalties per unit sold of the digital h/a. 20.9 million shares outstanding....and you can do the math yourself. Also, I am encouraged to see that the share dilution has stopped advancing..it is the first time that such an occurrence has taken place.
I expect to add to my position should any further price weakness occur.
Regards,
Rainier
P.S. To Alex: thanks for keeping up to date on the Rational Analyst thread. |
