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Re: StockLearner2011 post# 13873

Thursday, 03/16/2017 6:06:17 PM

Thursday, March 16, 2017 6:06:17 PM

Post# of 15377
Around $6-7/share. I am assuming they will sell ~4 million shares of stock somewhere in the $5-6-7 range, (when the share price gets there because revenues are accelerating) Then they will do the uplisting
NASDAQ has a $4/share minimum price level (I think) and also +$4 million of net capital. With a secondary (once they have established a revenue ramp), the stock will have recognized that, and then they can sell some stock.
They don't need to sell a lot of stock (maybe 4 mil shares) just to get more institutional owners. It will depend on how far along they are (the revenue ramp) and what the investment bankers say is the appetite.
They could also sell 10 million shares I suppose.
So, my answer to your question about PPS at the $100 million mkt cap level depends on shares outstanding, and where they are in the revenue ramp.
Without the secondary, and assuming a revenue ramp toward $10 million revenues in the first year of ramping (on the way to much higher revenues), I am assuming a 7-10X revenue for the first year ($10 million), then coming down eventually as growth slows from "Infinite" (zero to $10 million), then 100% growth ($10 million to $20 million), then $50% ($20 million to $30 million) etc.
Predicting this stuff is kinda difficult and maybe even absurd when you compare the mkt cap of AirBnb at $30 Billion on somewhere over $1 billion in revenues. Much higher Mkt cap to sales ratio.