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Re: Dannyboy4 post# 49115

Tuesday, 12/13/2011 9:00:57 AM

Tuesday, December 13, 2011 9:00:57 AM

Post# of 94541
I don't think your figures are off at all. As I wrote yesterday, I was pleasantly surprised that the $24.95 figure was per month and not per year. That immediately increased revenues 12x in my mind.

Now your assumptions about revenue are exactly on target given the price of the product, and that there will be 1,000,000 sales in the first 6 months. I was being conservative in my mind and thinking 100,000 to 500,000 and seeing revenues in the neighborhood of 30,000,000 to 150,000,000. I still think one million is high, but possible given the Bieber thing.

But based on your figure of 1,000,000 sales and just under 300M, and take 30% to the bottom line that gives 90,000,000, or an eps of .09. Take a pe of 30 and we're at that $2.70 stock price.

So, given your assumptions, I think you are right on.