26% high??? You gotta be kidding me! That's not bad at all, compared to history and other companies...salespeople don't work for free in this industry, and the good ones make a nice living, often in double digit percentages on sales. I don't think I'd use a lower number than 26%, or it starts to become wishful thinking...take a look at their current overhead costs (buildings, computers, etc), the HR costs (recruiting and ongoing), marketing costs, the salaries (and options) on their execs, plus the normal SG&A stuff, and you might reconsider.
I still think 1.10 is even aggressive...remember, there are OVER 20 MILLION SHARES out...the margins will be really good, but the "denominator" is what kills it... |
