Sycamore Entertainment Group Inc (SEGI)

[Herbcrow]

Crazy math! It always baffles me when people think of the value of a company in terms of price per share rather than market cap. Share price comparisons mean nothing. Netflix has a market cap of $238 Billion, it took them 24 years to get there. $egi at $100 a share at the current OS would yield a market cap of 198 Billion. Even if Segi was fortunate enough to experience the same rate of growth as Netflix, it would take roughly 19 years to get to $100 a share.

On top of that keep in mind that Netflix was out the gate on streaming way ahead of competition. Do you really think Netflix is going to sit back and watch Segi capture a niche market and not respond. Contrary to Bzzz's sonic boom, it is quite the opposite. Netflix is proactively reacting to any possible niche that an upstart like Segi is presenting and they are going to try to fill that niche as well. This is expected bad news for Segi, not good news.

Someday there may be stock buybacks but as Myth has been saying, with what money can that be done now? Does anyone really know what ad revenues are actually coming in, relative to expenses? I would be surprised if the revenues are exceeding the expenses which is as we should expect at this point in the company.

I am still bullish on Segi, but I don't expect Volcano explosions or Sonic Booms. Just hold the course, Ed is doing his best but we are a long way from being on the same level as Netflix.