I think one of the keys to penny investing at these low levels is to simply ignore the PPS. I mean if you're a true 'long' why do you care about these levels if you believe that it's not a matter of if but when this rises to .0010, .0028, .0056 .01 or even eventually .10 for that matter.
If material events emerge that substantially raise PPS then there should be good to great level of demand to sell into along the way. You don't necessarily need to own 1/8th of the float here to make a great return. Buying at 1,000,000 shares at .0002 (200.00) and selling them at .0010 (1000.00) sure beats the interest the banks are paying. You don't need to be a long or buy the float to make a profit.
Yesterdays news about Best Buy's intention to purchase Napster.com is more-significant than most of us realize. It means that there is a much-larger pool of potential buyers for properties like hypster.com and their pockets can be quite deep. I would have never have expected a Best Buy type of company to 'think outside of the box' and add this to their business portfolio but obviously they feel like this speaks to future sustainability.
It's really a great match when you look at it closely. Best Buy sees a future where the Web will be more of a premier venue for all things music. It's interesting to note that a couple months back they rolled out plans to sell more musical instruments and some tweaking of their business model. If I recall they plan to start offering music lessons in select stores and basically capture the loyalty of their market with the younger set.
Best Buy covets the hypster demographic and they are trying to cement a relationship through music distribution and also encouraging burgeoning new music artists. They don't want to just sell CDs or movies they want a bigger part of the music industry pie and they want to gain the loyalty of their demographics.
The reality is that in order to survive in the new internet-based economy you need to have a hypster.com type of property in your portfolio. Diversification is critical and moreover exponential growth (Web reach) of hypster.com is a dynamic and growing force.
Our value isn't even about the 550,000 + users it's the reality that with right marketing push and yes greater advertising budget, upgrades etc. $$$$$$$ current user numbers could be doubled or tripled in very short-order. I contend that any hypster purchaser will have to pay some sort of 'future premium' and will need to do so in order to acquire the property over others.
This could be right up the alley of a buyout entity with bucks. The Best Buy/Napster deal proves this. We now have a comparable for our situation as does our CEO. The market has spoken and at this stage this could mean something (IMO) north of $ 50,000,000 million for us should a viable offer come Michael's way in near or mid-term.
