Take a look at my analysis below.......
The look to monetize at .03 to .05 cents per 15 second spot. At .03 cents on 70 mill downloads that's 2.1M a month. Currently, the company only generated 2.9m total revenue in 2006. If the new executive from Time Warner successfully monetizes this company, the revenue should jump about 769% from this business division alone. They intend to be fully monetizing by the end of this year. This is very significant for this company.
On a net basis, the total expenses in 2006 are, about 5.5million. If we say losses grow to 10M to account for marketing increases, systems upgrades and acquisition costs, then the net gain on the company could be around 25.2 million on pod casts and 2.9M on other revenue totaling 28.1M. Less the 10M, net is about 18M on 33,217,094 shares outstanding creates EPS of around .54 cents/share. Company currently generating net loss of (.14)/share.
Analysis from another following the stock familiar with ad rates........
Advertising rates should go for .05-.20 cents each per download and the average overall would be .07 cents per add.
There are 40 million outstanding shares now because of the LIBSYN acquisition. So you are starting to see the revenue potential. The newest Morningstar report includes a couple peer companies and they are trading at 49.5 and 51.9 multiples to earnings. If we say .40c eps to stay conservative with a 50 multiple that would be $20.00 a share by the end of the year
THE BOTTOM LINE IS I INTEND TO GIVE THEM THE REST OF 2007 TO SEE IF THE PLAN TO MONETIZE DEVELOPS.
AI
