I think what you are missing here is market cap, if you are going to compare where share prices should and should not be, that is a factor. You say DKAM will be posting a profit in 2009 and none of the other companies will be changing their situation anytime soon, which must make you a psychic, a bad one at that, as ROX just had a billionaire take a substantial position in the company, my guess is he knows more than you. So instead of comparing what MIGHT be in the future, let's compare to what is right now. Based on your numbers below, DKAM if it had the same sales as the other companies below, would be doing better than ROX, worse than LBIX, better than WYDI, about the same as JSDA, and better than REED. But than when we look at market cap, Yikes, DKAM is already at the high part of that scale, with sales nowhere near the other stocks. Still not sure why you like comparing DKAM to soda companies, as that's totally different, I guess because you like to pull out the HANS story. Anyways, the closest comparable situation I see here is JSDA, because if DKAM had the same sales it would have about the same losses, yet at that point the market cap for DKAM would be about $160M compared to their $24M. DKAM already has the DRE and Kid Rock sales built into the market cap. Yes, you can say all day long this will happen and that will happen, but the truth is, we don't really know what will happen until it does. If PK is 100% right on all his targets, great, but so far he hasn't been. I'm not blaming him, that's just part of doing business, but also has to be considered when making forward looking valuations. When DKAM is showing the same sales as JSDA, but is losing much less than 70c, then tell me why it deserves a better market cap, but as of right now, using the stocks you choose to compare to, DKAM with a market cap of $19M is way over priced, about 300% higher than sales, or at the very least, already has forward looking events priced in.IMO
ROX Price .18 EPS $-1.76 Rev. 27 mil MC $3.6M
LBIX Price .33 EPS $-.30 Rev. 31 mil MC $6.8M
WYDI Price .10 EPS $-.46 Rev. 980K MC $1.7M
JSDA Price .75 EPS $-.70 Rev. 39 mil MC $24M
REED Price 1.49 EPS $-.78 Rev. 13 mil MC $16M
DKAM Price .24 EPS $-.08 Rev. 4.5 mil MC $19M
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ROX Price .18 EPS $-1.76 Rev. 27 mil
LBIX Price .33 EPS $-.30 Rev. 31 mil
WYDI Price .10 EPS $-.46 Rev. 980K
JSDA Price .75 EPS $-.70 Rev. 39 mil
REED Price 1.49 EPS $-.78 Rev. 13 mil
DKAM Price .24 EPS $-.08 Rev. 4.5 mil
Now you can keep vomiting all you want to that DKAM is not going anywhere until the sales have already happened but it's obvious that DKAM will have the smallest amount of sales and be the only one of these companies posting a profit in 2009.
The plain fact of the matter is there is nothing out there to justify it going lower in any way. Every one of these stocks has much, much larger losses than DKAM and no sign of that changing for any of them any time soon or even close to soon.
And if JSDA can make it to $33, then so can we. After all, they did it on news of exploding growth well after getting their Target deals.
REED at 1.49 and losing a boatload. DKAM when it hits that $13 mil will be posting profit.
Look at them, look at them again. DKAM fits nicely in that puzzle around 80 cents to a buck if not more. Then the 300% growth and move to profitability takes it above its old highs at $3.58. After all, everyone who buys it up then knows Kenny will be coming again next fall to tell us the sales are soaring again on the next three iconic introductions.
Wasn't life nice when the hardest thing you had to do was chase an icecream truck :)
Wasn't life nice when the hardest thing you had to do was chase an icecream truck :)
AI
