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Non-Tech : Ashton Technology (ASTN) -- Ignore unavailable to you. Want to Upgrade?


To: mmmary who wrote (3744)4/3/2001 3:22:55 AM
From: jackie  Respond to of 4443
 
<ASTN needs to be successful right this second.>

You mean to say at the very instant you posted your message, ASTN was at a do or die moment in its history?

How did you determine the precise moment when all of the variables and trends affecting the future of this company had reached a cusp of decision, from which only two possibilities existed, a bright future on the one hand, or an inevitable spiral into disaster and ruin?

But of course, if you really meant at that second, I would argue ASTN was being successful at that instant. Yesterday saw a record volume of revenue shares. Is that not a success? How many companies can you identify right this moment, that are increasing the volume of the key product at the rate of roughly 20% per WEEK?

If this rate continues, and if the breakeven point is in fact 25 million revenue shares per week (which is probably an over statement) in a mere 7 to 10 weeks this company will begin posting a profit. Here's a useful rule of thumb: If any quantity is increasing X percent per unit of time, that quantity will double in roughly 70/X units of time. In our case we are increasing at a rate of 20% per week. This means the quantity will double in 70/20 weeks or 3.5 weeks. It will quadruple in 7 weeks. We are sitting at about 6 million revenue shares per week now. 4 X 6 gets us 24 million. You can verify this by looking at the total number of revenue shares we started out with only six weeks ago.

Amazing isn't it?

When this quarter's financials are published, anyone will be able to calculate, almost to the penny, how much volume will be needed to attain various P/E ratios. At what point the market will reward the shareholders of this company with increased share prices is anyone's guess. But with revenues increasing at the rate of 20% week, it won't take long to get someone's attention.

Regards,

Jack