My analysis of the 10Q report. We all saw a dramatic shift in business execution.
1. There was a sudden focus on Acquisitions, if what I hear is correct, there are more to come.
2. We all knew this was a one man operation since beginning of the year. There was no sales or marketing team in place
So the question is how does one person do acquisition and make sales, for anyone that has ever run a business it is impossible.
3. The 10Q reflected this change. Sales dropped in exchange for acquisition. We did not see the real number because if truth be told those numbers would be higher if we included RP numbers. Which was not. I will bet when combined would be higher than 2nd Q. that is the part everyone is missing. The 3Q report does not reflect the result of the 3rd quarter successful acquisition of Rogue paper.
So here are what I see in the future of the company based on observation:
1. He brought in a new director of sales and Marketing and a consultant for StudentConnect project
2. He now has a second source of revenue for the company (Rogue Paper)
3. I will expect to see EarthSearch sales get back on track in January 2012 not 2011, he is still doing acquisition and he probably is training new Director of sales so look to 2012
4. I will hope to see additional acquisition that increase revenue even better in 2012.
5. We should see StudentConnect implementation in the US in 2012
5. Lots of cheap shares issued to fund the company obviously, pps is down, we should see a drop in dilution with new PR firm and increased revenue.
6. He brought in a strong PR firm to handle things (probably the power move of the year for ECDC) shareholders should now see the stock hold ground and push back with increased PPS
What was disappointing to me:
Company has taken no action to defend its patent, this alone would drive the stock to over 5 cents.
Nevertheless I am very bullish on this stock.
