Thank you for your reply, Mr. Writer.
<<1st of all fully diluted we have about 6.2 million shares outstanding and 1.4 million shares in the float.>>
Thanks for the correction; in my original post I linked to the source of the incorrect figure:
techstocks.com
At that time I did not know that this source was an Investor Relations consultant hired by your company (because he had not identified himself as such), but I suspected something like that- hence, I thought that the figure might be reliable. I'm sure you appreciate the cause of the confusion.
<<2nd I do not know why you are going to double our revenues for sake of argument. They are what they are.>>
Because I was trying to work out a quick valuation for your company; a PSR is typically computed on the basis of annualized figures. You had directed me to your web site to look at the financials presented there. Unfortunately the only figures I found available for revenues were for Q3 and Q4. So what I did was compute what's called a "run rate" figure in order to come up with an annualized rev. guess- BTW, this is usually done by multiplying the most recent quarter by 4, but your Q3 figure on your web site, if I understand it correctly, is much smaller than for Q4, so I didn't want to take such a small number for a first appraisal.
<<Plus these do not include revenues from two wholly owned subsidiary corporations.>>
Ahhh, that would have been useful to know. Remember that as a potential investor one needs to work out a rough figure for what the company is worth, and this kind of information is important to have. (You would of course agree that it would be foolish for someone to simply read a press release, download the Crayon Crawler, say "Gee, great product!" and go out and buy the stock at any price without having looked a little more into the company.) If you become fully reporting, I presume that problem will be solved. I look forward to that level of detail.
Since the company doesn't have earnings, trying to find out a figure that is reasonable to pay for a share of stock is a little tricky (no PER), and other typical measures like price-to-book (PBR)would be silly to apply to your company (the PBR would be ridiculously large, making it seem as though the company was WAY overpriced, and I think it's not relevant in your industry). So there's not much left to look at on a first glance besides your revenues, so that's what I was stuck with and accordingly tried to figure out a PSR.
<<And finally as far as our PSR it is what it is.>>
No argument from me there. But there's a huge difference between Is and Ought, and it's the "ought" that I'm interested in as a bull or a bear.
<<Our stock has seen significant increase due to the announcement of the Crayon Crawler....>>
Right, but new folks need to ask themselves whether the company is worth anything near its CURRENT market cap ($6.2M x $7.69 = $48M). It's worth reminding folks that there are hundreds of fine microcaps that trade out there that sell for less than this price.
<<... and obviously investors recognize this technology and are investing tin the future of this.>>
I think you may be giving purchasers of your stock a little too much credit. ;-) Unfortunately, when it comes to money, many do not proceed with the proper caution or information and make extremely unwise decisions.
Good luck to you and your company,
Anaxagoras |
