Good afternoon, Cashbyers, and let me delve into some of the points you've raised.
1. I haven't tried out Discounted Cash Flow analysis on the company, as it's really hard to guesstimate the range of the stream of cash flows in future years.
2. I took a look back at the history of common shares outstanding. The company was at 68 million issued shares at June 30, 2015, growing to 72 million issued shares this past June 30, and further growing to 90 million shares as the most recent 10K was being promulgated (see page 29 of the 10K for the source of that info). So I'm not sure where you're deriving your 20% dilution from 2015, but you're in the ballpark so not a big deal at all.
3. As regards the price/sales ratio, your .26 number applied to a 2 cents stock price yields a sales number of roughly $8 million. That would be a reasonable number if we use a smooth growth rate from 2015 to 2016 to 2017 fiscal years. I would think that we might use as high a number as $14 million for annual sales if we use June and July monthly numbers as the basis for annualizing. I'm just saying that, to your credit, you're being on the conservative side in figuring out where the stock price might be headed.
4. I respect your use of technical analysis, but I have sincere concerns as to whether technical analysis really "works" in a situation where Mr. Fife can decide to unload some of his true-up cheapie shares at any moment or, on the positive side, where any of the posters here could put in an order for a couple of hundred thousand shares and drive the price up by 10%. Just going by support and resistance levels seems about as far as I'd go using technical analysis. Almost forgot, I've seen so many postings about how the market-makers in penny stocks have higher priorities than maintaining an orderly market that I'm even more reluctant to bring technical analysis into the picture.
As before, I'm in agreement with you that the shares remain undervalued at current levels. I'd like to see a press release on August and September sales, I'd like to see a progress report on obtaining permanent financing to take out the short-term convertible notes, and I'd - for the purpose of VHUB's prospects - like to see Trump elected as regulations upon small businesses would be rolled back to a significant extent. In summary, there are more chances right now for pleasant surprises than unpleasant ones.
Have a good weekend - I'll be out of pocket on Monday and most of Tuesday, but it will be interesting to get back on the computer and see how the stock will have performed on the next two trading days.
AI
