1) The Company's own Example, as Posted at the URL above:
--- Company "A" sends 1,000 Royalty and Statement Checks monthly, OF WHICH 80% are ACH (electronically delivered) and 20% are snail-mailed.
WITHOUT JCDS's Payment Manager, that Company was spending appx. $4,000.00/month.
WITH JCDS's Payment Manager, that Company NOW is spending appx. $408.00/month for the 80% (800 of 1,000 checks) that are ACH, and $268.00/month for the 20% (200 of the 1,000 checks) that are snail-mailed, for a PER-MONTH TOTAL of $676.00 -- A SAVINGS of $3,324.00!
JCDS charges Client-Company "A" (and the Client-Company, in turn, PAYS JCDS) a monthly total of $676.00.
NOW -- ALL JCDS COSTS/Overhead/you-name-it = appx. 33% of Revenues. That is, the GROSS MARGIN of JCDS is appx. 67%. (I know, I know... just please FOLLOW ME here!)
SO -- $676 (for this ONE Client-Company!) X 12 Months = $8,112.00.
And NOW -- 1/3 of $8,112.00 = $2,704.00. And NOW -- 2/3 of $8,112.00 = $5,408.00 Annual Gross Profit to JCDS!$
That's $5,408.00 Gross Profit to JCDS PER YEAR on this ONE "sample" Client-Company.
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NEXT -- To make -- Annually -- One Cent per-Share of Net Earnings will require a Gross Profit (well, we're also saying NET Profit, for discussion's sake)...of $4,570,000.00 (i.e., $4.5 Million Dollars).
CONCLUSION: JCDS, Annually -- ASSUMING the above Company-Posted example of $5,408.00 Gross/Net Profit per Year per Client-Company is typical -- would have to acquire and serve appx. 800 Client-Companies whose Annual Payments to JCDS would have to average $5,408.00 per-Year.
THIS (above) would generate the necessary Gross/Net Profits to JCDS for Annual Earnings per-Share of $0.01 (One Cent per-Share).
FINALLY -- We must -- we really, really MUST! -- consider prevailing and typical Price-Earnings Ratio. (The good ol' P/E Ratio!)
SO -- Let's assume (Ain't we havin' FUN here? We ARE!) a conservative and cautious P/E Ratio of 10.
SO -- P/E of 10 x $0.01 = $0.10. That is to say: The Share-Price of JCDS very-well COULD BE Ten Cents per-Share!$
OR -- Let's go with a more typical P/E of 20! P/E of 20 x $0.01 Net Annual Earnings per-Share = $0.20! That's a Share-Price of TWENTY CENTS per-Share for JCDS!$
OR -- Here's the REAL fun part...A P/E (with a built-in "excitement and high-tech and high-growth factor") of 35! P/E of 35 x $0.01 Net Annual Earnings per-Share = $0.35 Share-Price!!$$$
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LASTLY -- For those of us who live in Rio Linda and dream of spending every day of our amazing Blessed lives at DisneyWorld --
...!
JUST ADD A ZERO TO EVERYTHING -- ALL NUMBERS for No.of monthly Royalty and Statement Checks per-Month...AND, therefore, ALL NUMBERS for Monthly and Annual Revenues...and...
...BAZINGA!!$$$
Friends!
Kiddies!
Have fun with this. We all might just-be nearing our fabulous and exciting fulfillment and enrichment.
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