Everyone,
Here is some fundamental information to help answer some of the questions being asked.
First of all the website is a buy or build proposition and I guarantee they will buy it. Hence the need to get the stock over $10 for the warrant exercise and the additional capital, you can buy a helluva website with 18+ million.
Second they way the company sells tickets is sometimes below the lowest ARC fare, they use coupons, specials, and consolidators to get these prices. They make the largest margin on consolidator tickets and they sell a ton from Carl Icahns new outfit, obviously the $10 max fare doesn't apply here. You may also recall that they mentioned a "interactive" feature to the website, that is to help facilitate consolidator tickets and also was the ticket booked via the net or by standard agent method (ie which commission tabulation applies). They also get revenues from certain hotel, and rental car companies based on transferring callers to them, with a percentage of the gross if the traveler books.
There long distance carrier is AT&T with whom they spend about $150,000 a month in long distance. Makes sense for some kind of partnering arrangement with AT&T (I am no net expert but I believe AT&T has deals with a number of the internet SE's) so they could strategically place links to IFLY's page. They in turn could market their LD service to everyone who gets a ticket through IFLY who would probably get a slice of that revenue as well.
They are putting the telecom technology in place to be able to identify callers so that they can allow repeat customers faster access to the call centers, although first time callers would still get about 70% blockage. They are putting another call center together to help handle the excess demand.
Remember they were half their current size a little over a year ago so trying to get your arms around all of this, while doing a IPO is a lot to handle. However as I have posted before if you look at the employment backgrounds of two current, and one former director you will see a common thread. They all have extensive backgrounds in the stock market, and have done plenty of IPO's before. They know what the street wants to see and hear from both a fundamental, and story point of view and they know when to use each of the tools at their disposal.
My advice is sit back and let them do what their good at and you will be well rewarded. If the stock comes down a little it's probably just some nervous money exiting the party a little too early. Remember that everything I have posted here is predicated on the warrant exercise, that will bring in 3 times the money the IPO did, it will happen just wait.
Sleep tight. |
