SCMI revenues and future revenues:
Okay, here's calculations. If you don't believe me look at the numbers. I predict that by 2005, we'll have full rollouts by 4/5 majors. If we stay conservative, we'll protect a billion CDs for each major. That's 4 billion CDs annually.
We get to split $0.05 for each CD protected so SCMI will get $0.025 per CD. If you have SCMI and QTIG, twice the fun!!!
4 billion CDs annually X $0.025 = $100,000,000 annual sales.
Let's say SCMI is an "average" company making a 15% profit margin.
$100,000,000 sales X 15% = $15,000,000 annual profit.
Then we would have an earnings per share, or EPS, of:
$15,000,000 / 500,000,000 shares o/s = $0.03
Multiply EPS of $0.03 by a conservative multiple of 20 and we get $0.60. So if we protect 4 billion CDs annually, our share price should be $0.60 SWEEEET!!!!
Do you know what's even better? Our Profit margin is not a measly 15% like MVSN. Our profit margin is 90%!!!! MVSN is in the SAME EXACT line of business by licensing their software to disc duplicators, but their management is stupid and doesn't know how to handle expenses, SCMI DOES.
So with a 90% profit margin calculation, we'll have:
$100,000,000 sales X 90% = $90,000,000 profit.
$90,000,000 annual profit / 500,000,000 shares o/s will equal an EPS of .18. Multiply that by 20 and we get a share price of $3.60! HOLY SMOKES. Do you know the ROI on that from here!!!!
And it even gets better.
These calculations were based on using:
1) 4 billion CDs protected annually. We can easily see 4 majors with full rollouts.
2) This is calculating 4/5 majors. Imagine if we get 5!!!!
3) shares outstanding using 500 million shares o/s. I heard we breached 500 million but no more dilution.
4) A short squeeze of 250-400 million shares short and sky rocket us quicker and higher!!!
