Good morning, Hostastock,
Per the most recent 10Q filing covering nine months ended March 31, revenues totaled $4,456,933, which comes to around $500,000 per month. If indeed the June revenues number is characteristic of "the new normal" of, say per your note, $900,000 per month, then I'd be every bit as bullish as some of the newer and most enthusiastic posters on this board. You and RPH certainly would have a better intuitive sense of the situation than I do, given your ongoing direct relationship with the company, and I accordingly respect your opinions more than my own.
Let's see if we can agree on what we're looking to happen in the coming three months:
1. Hopefully before the end of August, there will be another positive PR, this time relating to July sales, that will confirm that $900,000 in monthly revenues has become the new normal.
2. It would be very positive for the company and its stock if the sales growth will convince whomever the company is trying to involve in non-toxic financing to go forward and invest.
3. When we do see the 10K sometime in October, here's what I'll be doing:
a. Doing my subtraction of the nine months bottom line from the full year bottom line to see if the fourth quarter by itself was profitable.
b. Doing the same subtraction as regards gross revenues to see if indeed the fourth quarter sales were at least $2.7 million.
c. Looking at executive compensation. If the three top dogs didn't increase their individual annual salaries of 150K which was last year's number, that would be helpful.
d. Reviewing the capital structure to see how much dilution has actually occurred and what the fiscal year-end debt actually turned out to be.
e. Perusing the footnotes carefully for "subsequent events."
f. Looking for commentary as to the breakdown between domestic and international sales.
In a much tighter time frame, namely this week, I'll be fascinated to see if Friday's intraday high will be surpassed. That .016 level which was Mr. Fife's conversion point for 8 million shares really could be a challenging resistance to overcome.
Overall, I have the same impression which you have been conveying in a reasoned and reasonable manner, namely that if there are 81 million (or not that much higher by now) issued shares out there, and if the company is doing $10 million in annual sales (and, giving proper respect to Gustavo's recent post) and is at breakeven or at least damn close, then the stock is already worth multiple pennies - just rounding, 80 million shares at 5 cents per share would make the company worth $4 million which seems to me to be a very modest valuation.
Have a good week!
