AI
Friday, December 29, 2006 6:55:41 PM
1260 - re:burn rate
I hope Wave needs a constantly increasing burn rate - to service business and create new business lines (mobile).
The key is that I hope the burn rate is linear and the revenue is exponential. To get to the postulated 2007 top line revenue of 38 mil, the revenue will need to will need to more than double Q over Q.
The meager $8 million dollar 2007 earnings are just caused by the relation of the two curves for 2007. I'll happily give Wave a burn rate increasing by $1 million a quarter, for revenues doubling quarter over quarter for several years.
Do the math, in 2008 the share price goes "Qualcom".
If the scenario is true - the street will see it coming and in 2007 the share price will be higher because the street will give Wave a P/E much higher than 28 (actually the subplot of my post) in the Q where Wave makes it's first profit - Q2 2007 (possibly Q3).
The above is my hope - ICBW - IHBB (I have been before).
Happy New Year to all,
toro
I hope Wave needs a constantly increasing burn rate - to service business and create new business lines (mobile).
The key is that I hope the burn rate is linear and the revenue is exponential. To get to the postulated 2007 top line revenue of 38 mil, the revenue will need to will need to more than double Q over Q.
The meager $8 million dollar 2007 earnings are just caused by the relation of the two curves for 2007. I'll happily give Wave a burn rate increasing by $1 million a quarter, for revenues doubling quarter over quarter for several years.
Do the math, in 2008 the share price goes "Qualcom".
If the scenario is true - the street will see it coming and in 2007 the share price will be higher because the street will give Wave a P/E much higher than 28 (actually the subplot of my post) in the Q where Wave makes it's first profit - Q2 2007 (possibly Q3).
The above is my hope - ICBW - IHBB (I have been before).
Happy New Year to all,
toro
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