SwingTrade Member Forum

[jaybird249]

SBEI 1.3 MM float IPO MONSTER next week:

THE APPLE IPHONE ROLLOUT WAS THE MOST PUBLICIZED PRODUCT LAUNCH EVER IN THE INDUSTRY, WITH 10 MILLION SALES PROJECTED IN THE FIRST YEAR.

SBEI:NASDAQ ($4.4, 1.3 MM float) will bask in the IPHONE glow on August 10 merger when shareholders approve a merger with NEONODE, A PURE PLAY IPHONE COMPETITOR THAT MANY REVIEWS HAVE RATED SUPERIOR TO THE IPHONE!! HERE IS WHY SBEI COULD GO TO $25 AFTER MERGER APPROVED:

-Tiny 1.3 M float.
U.S. CARRIER DEAL: Iphone only works with AT + T. OTHER U.S. CARRIERS ARE LOOKING AT DEALS WITH NEONODE TO COMPETE WITH A T + T !! THIS IS HUGE.
http://www.fiercewireless.com/story/neonode-takes-aim-at-iphone/2007-03-29
IF SBEI ANNOUNCES A DEAL WITH A U.S. CARRIER IT COULD GAP TO $15 OVERNIGHT!!
-OTHER DISTRIBUTION DEALS:SBEI announced distribution deals in SE Europe in July, but IS FINALIZING DEALS IN THE REST OF EUROPE AND OTHER MAJOR MARKETS.

VALUATION Even using CONSERVATIVE sales projections, SBEI has HUGE upside!Say Neonode sells only 5% of the Iphone projection the first year:
10 million units x 5% = 500,000 units
500,000 units @ $400 = $200 million in sales
gross margins at 55% = $110 million in profit

Neonode's P/S ratio and share price:
Price/Sales Ratio = 5 -> $44
Price/Sales Ratio = 10 -> $88
Even if you cut the units in half to say 250,000 units, you get $22 and $44 respectively.

APPLE LAWSUIT: Probably one of the first things they will do after the merger is approved and they are trading under a new symbol is to sue Apple for infringing on their patents.
You remember what SCOX stock did after they sued IBM for $1 billion? Stock went from single digits to over $20.

SBEI Merger approval vote is only 8 trading days away.. SBEI has the potential to soar from $5 range to $15 similar to 2 other recent merger "shells" AETI and CSPL).

SBEI wont stay at these levels for long..