Funny, I never really bothered to ask what their definition of a seat is. But, I would guess that a seat is any computer the software is installed in.
As to why they are worth $200 each, that is what the company has determined as a sales price. At one point, the company stated they would be somewhere between $200 and $400 each. So, trying to be conservative on the numbers, most are using the lower figure. I am actually of the belief that if some company wanted to buy a million plus seats, that $200 could probably be negotiated down. But even at $100/seat, they would still see $100 million for a million seats. This would leave them with $40,000,000 in profits at a 40% net profit margin. With 20,000,000 shares out, we get $2 per share in earnings, and at a conservative PE of 10, we still could see a $20 share price. Maybe scary, but not out of the question IMO.
Don't get me wrong, I'm not saying this will happen overnight, but rather over time.
The Oracle Open World trade show is next week, starting on Monday.
As was stated in another post, I'll be happy to see $10, too.
All this, and Wall Street doesn't even know SCNG exists yet. Could we actually be sitting on the next Yahoo!? Time will tell. |
