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It doesn't burn much cash relative to it's

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Matthew12321   Monday, 07/16/18 09:15:50 AM
Re: Alan Brochstein post# 144682
Post # of 178210 
It doesn't burn much cash relative to it's size, it's a small amount of money in truth. Not sure why your acting like 600k - 1.2m burn is all that high for a company that will churn over 25m in rev this year alone and have a positive eps. Share count by year end will be 300m common shares and 50k pref. That equates to a fully diluted share count of 300m + 270m (pref equation) is 570m total shares. This number is also post lawsuits and convertibles. They will be able to bring in new debt at much more favorable rates. I get your 870m share calculation and while you're not "wrong" I don't think you'll be correct at year end. So my quick and dirty on these guys is 25m rev * 20x rev multiple (industry multiples are far higher than what you indicate in your article) all over 570m shares you get a fair value of $0.88 a share. Even if you disagree with the rev multiple (we can use 10x instead) fair value is around $0.44. All that said valuation time horizons will be far higher once the lawsuits are closed and share structure is reigned in / finalized as I laid out above. People will no longer value it based on 12m fw ratios but instead will build dynamic 3 - 5 year valuations as I have done and in that model you're easily looking at over $2 a share. That may be a bit down the road and could take 16 months to get there but that's a far better % gain than you'll get on many other names in the industry.

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