To: Douglas Craig who wrote (5686 ) 5/16/1998 4:23:00 PM From: BlackStar Read Replies (1) | Respond to of 12043
As far as the numbers and the profit margin, I asked Brad once what the approximate margin was with the deals of bringing companies public and he stated around 50%. So, all of the numbers being thrown around need to be cut in half as far as earnings to share with shareholders. So if a deal is projected to take three months to close, Eutro charges the client double of what their running costs are during that period. What happens if there is no deal being worked on for a month? Should Eutro put that on the tab of some customer or just 'forget about it' when asked about their profit margin? I am not slamming your effort but rather trying to show that even if the exercise is interesting it is a rather blunt tool. It would be a lot more rewarding to get a good grip on the cost structure of Eutro. Anybody have a good idea what it costs to run Eutro over the year?That is why I have stated along with others that the 50 mill shares is at least as important as getting contracts. At this rate, the stock should be valued at .10-.15. I agree that the technical valuation is substantially higher than .03 and it is increasing due to the good work Eutro does. But that is not even the main factor in predicting the price given a certain event. I would say that investor confidence is heavily in the red. In that department, Eutro has certainly spent more than they had. Let's not get into speculation about reasons and being right or wrong. Let's just take it as read that there are a lot of mid to large investors out there that are not very impressed with the management. I don't think even a full resolution of the share issue will set everything back to 'gung ho' mode. It will take time, deals, consistent information and revenue to bring them all back in force. Personally, I think Eutro can pull all those things off over time. That is why I choose to look ahead and not back. I am also aware that there are quite a few things that may go wrong between here and there, so I am checking all info as it comes in. For short to mid term I believe EUTO will not be impressive, less the occasional spike. On the other hand I am fairly certain that the long term prospects are, if not staggering, so at least very good. Provided nothing really bad happens I think it is reasonable to expect at least 1000% appreciation over three years. Either that or bust.