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Re: hebroots post# 6842

Thursday, 09/14/2006 10:09:13 AM

Thursday, September 14, 2006 10:09:13 AM

Post# of 91681

I agree with you that a PSR (price to sales ratio) for $7M would not be favorable. We would probably be overvalued at this point. The important point here is that they will now start to realize sales revenue.

What I think needs to be considered is the "potential sales" for a year or two from now. The sales growth will be most important. Can a $7M sales the first year grow to $15M+ the following year? When will a company become profitable?

I expect it will be a year or two before Spooz will become profitable. It will be expensive to market their product to grow their sales revenue. Can they experience tripple digit growth? Can they get to profitibility in a year or two? All valid questions.

cwoody