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Re: gem man post# 8013

Friday, 02/22/2013 8:27:20 AM

Friday, February 22, 2013 8:27:20 AM

Post# of 8575
No problem glad I could halp!! I did miss speak just for he record I ment to say that the the topline is growing slower than the SG&A costs which is why they never see anything hit the bottomline!! They clearly have a issue with the cost to market in this business, and larger deal do not seem to be more profitable, in fact they seem to cost more!! What we were told was this year was going to be $15MM in sales, or 3.75MM/ quarter, which you would think would be enought to make them a profit, but it doesn't even come close!! With more aquisition will SG&A be 1.8MM again like a couple of quarters ago.. Who knows!!

This is what the company need to do for 4 quarters straight!!

- No diluting or funding at all!! Selfsustained
- $4MM minimun/ quarter
- $1.6MM in GP/ Q
- $1.2 MM in SG&A /Q
- $400K Earnings/Q
- $1.6MM Earnings/A

1.6MM x 10 = $16MM Mcap!!!

problem is it is already at $20MM Mcap and they still have a LONG WAY TO GO!!

I see no upside here what so ever, which is why I am not a holder or a buyer unless it goes to 3 cents!!

GL2U

maestro
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