Hi, all,
I recently took the plunge and tossed a little money on the roulette wheel of this internut stock. A friend, an otherwise sober individual, convinced me to at least give it a try. I have read about Gilder being on the board, the investment by AOL, the proposed deals with HAUP and TheGlobe and others, but I still feel that to call this simply a speculative stock is a dramatic understatement.
Perhaps someone could comment on a little info I have dug up. According to a Bloomberg article (http://nscp.snap.com/main/finance/news/story/0,234,-42645200,00.html)
I have the following financial info:
"In November, the company warned it would need to raise cash to continue operations. It cautioned that a cash crunch raised doubts
about its ability to continue as a going concern.
The company's technology, called the Wave System, has met limited success. Total reported revenue since the company was
founded in 1988 is $27,751, while it has racked up a loss of $56 million. It has received $3.1 million in license fees.
The company has a market value of about $792 million."
Is this correct that the total revenue is $27k, while the company has spent $56 million? And yet it garners such a market valuation?
At the end of the article it says,
"The company licenses its technology for free, hoping to take a cut of future transactions."
So there won't be any licensing fees in the future? I saw the first quarter results and it looks like were on track to lose another $15 Mill. this year, though the first products are hoping to ship towards the end of the second quarter. Will revenue be recorded when the HAUP products ship, or is WAVX giving their goods to HAUP in the hopes of catching a cut of the eventual revenues?
I find myself almost amused that I have real money on this baby. Maybe I haven't looked over the internuts too closely, because I am not used to seeing such haemorhaging of money. What I would really like is to dip into that constant stream of greenbacks flowing from Lee, MA.
Oliver |
