To: greentree who wrote (181 ) 12/30/1997 12:47:00 PM From: HVN Read Replies (3) | Respond to of 370
Time to respond to your constant downplaying of this stock. I'm not going to dispute your 'historic' tracking and knowledge of this company and its financial committments. However, I've checked them out myself and have been rather impressed with their product and value proposition. Their current approach to selling their wireless data service is a no-brainer. That's why the likes of GTE, AT&T and BAM are jumping on board. These carriers have invested heavily in CDPD infrastructue and USWDA's product is not only as easy to use as landline service, but cheaper and definitely increases productivity. With the huge sales forces their carriers have, USWDA will gain access to huge installed customer bases. Granted USWDA may have screwed up in the past, however, going forward they definitely have a great solution. With regards to the stock - maybe it's stock is overpriced. Maybe it's a steal at 5 bucks. Some of the new managers definitely know the industry very well since they have been working with it for quite some time now. However, in the long run, they will definitely go up. Here's some simple accounting for them: - They charge $0.18 + 1.65% per transaction. - A vendor doing as little as $500/day per box will bring USWDA $10/day USWDA gives these vendors the transaction box for free. Assume cost at $300 at the most. The good part is that the amortization on this box can be spread over 2-3 years unlike with cellular phones. Assume 3 years. That's $100 on the box for 1 year. - If they can get even as few as 5000 boxes installed (not very difficult to do with such large sales forces working with them), they will be going $2.5 million of transactions a day - that's $900+ million a year. Their revenues are as much as $18 million for the first year. Take out the cost of transaction boxes, the amounts paid to the order processor (Nova, isn't it?) and they have a fair amount left over. Does this sound fair?