ERF Wireless, Inc. (ERFB)

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How big is the pie?

I figure if ERF can turn the corner and become earnings positive this year, we are "in the money".

Using round numbers and a bunch of what ifs... in 2012, if the company can earn $47.5M ... that is 10 cents per share. Using a multiple of 10 (low end... it should be much higher for a high growth company)... this works out to $1.00 per share.... that is a far, far away projection from today's penny. But how far down the road could it be?... once over the top and growing in several overlapping markets in the same area, the margins get better and the earnings start to feed the cash cow. This business plan snowballs.

So back to reality... we have a great opportunity to make some money here but we need black ink and an new set of investors. Can DC pull this off? Maybe. I think it is safe to say that this company will always trade below it full potential with DC at the helm. Wall Street doesn't like companies that have one person with too much control the way DC does here. Especially with a resume like DC's... it is a huge red flag to the savvy investors that sift through the crap that lands on Wall Street. Too many shares are in his control for starters. Secondly, he is trying to run the day to day as the CEO. He is a smart guy, don't get me wrong but he isn't smart enough to know that he would make a whole bunch more money if he were to put the right guy at the helm for him. Control freaks with egos don't make it with public companies... that kind of personality is only right for owning a private company.

So ... even with the wrong guy at the helm... can we make money here... I think so... just not as much as we could have.

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