If you define profit as the money left over after Frasier is done taking a huge salary, then I suspect you are correct that he isn't leaving much money there for the rest of us. For Marcus it is as if he didn't ever sell off 1/3 of his company -- as if we never invested our hard-earned dollars. Or at least I think he is able to ignore his responsibilities most of the time.
But to justify a $15M market cap at a PE of 20 only requires profits of $750K. I bet we are there already.
Certainly passage of the tax bill will help a company like Datpiff.
It also greatly raises the incentive for Frasier to buy us out and revert to a pass-through. [As an aside, even if I think this is worth over 30c per share, we'd probably not fight him if he came up with 10c per share for a total of $2M to buy back the 20M shares not in his hands -- and he'd then be so much better positioned on taxes. But I don't think Frasier is savvy enough to figure out how the new tax bill would make a win-win like this possible. Maybe if he has an accountant who is able to understand these issues?]
And the only reason we aren't at 5 times that $750K mark is that Marcus has never been willing to really push the Datpiff brand. It would be a gold mine for cannabis marketing. And whereas he has done some very limited marketing of hats and t-shirts using obscure links on the Datpiff website, he has repeatedly shied away from major deals that would put Datpiff hats by major manufacturers into mass retail stores.
If someone bought IDLM, they could greatly expand merchandise sales and they could build on the Datpiff brand to expand into other music genres.
We've all seen the video of Marcus acting like a 2-yr-old when he smashed the toaster oven. We all know the stories about his behavior. He simply isn't cut out to be CEO of a more dynamic operation, and he cannot keep high-quality people around him who would help in such endeavors. He apparently spends much of his day trading Pokemon cards, tweaking 2-bit games, pitching tantrums, etc. I continue to hope that one day he grows up to where his maturity matches his creative brilliance. But that's probably not going to ever happen, and in the meantime I think there is a very large opportunity for this company to flourish under better management.
So, I have no trouble at all putting a $15M price tag on this.
Where else could you buy so many millions of users, such a well-known brand, and an asset like their copyright to so much music for anywhere near $15M?
No, the problem is that Marcus doesn't seem to be selling. And he hasn't been willing to buy back our shares. He basically hasn't been willing to STEP UP to his responsibilities as CEO of a public corporation and would rather try to pretend that we don't exist.
I am obviously NOT an investment advisor.
AI
