Thinking (perhaps dreaming) ahead.
If multiple OEMs ship PCs with embedded WaveMeters and bundled WaveEnabled content, other OEMs will follow. The Wave system will be ensconced as a new motherboard functionality. Shipments will proliferate. The Wave system will become an e.commerce standard. The installed base will be retrofitted with inexpensive expansion cards. The Wave system will become ubiquitous. Its versatility will be realized. Its utility to e.commerce will broaden.
If this occurs, the following illustrations would be very conservative:
Take just the domestic, home market. Say it comprises 30 million PC households. If Wave were able to derive revenue averaging just $1 per month per household (perhaps my most conservative assumption), annual revenue would equal $360 million. If Wave were able to derive earnings of just 10% of revenues, annual earnings would equal $36 million. If Wave were to issue the maximum of 50 million shares and were able to command a P/E ratio of only 10, the stock price would exceed $7.
Apply the same analysis to a global market comprising, say, 100 million PC nodes. If Wave were able to derive revenue averaging just $1 per month per node, annual revenue would equal $1.2 billion. If Wave were able to derive earnings of just 10% of revenues, annual earnings would equal $120 million. If Wave were to issue the maximum of 50 million shares and were able to command a P/E ratio of only 10, the stock price would equal $24.
Am I thinking ahead, or just dreaming? |
