Mike Lindell Media Corp (MLMC)

[bodreaux]

Latest Quarterly shows expenses of around $1.3 million with 3000 subscribers, or around $430k a month. Assuming additional subs will increase variable expenses in order to service them (you're talking an 8 to 15x increase in subs depending on which number you believe). You also have to factor in something for what they're paying CC both for initial signup and their ongoing subs, I think one of the reasons CC partnered up is because they got a really good ongoing stream from the subscription rate. My thinking was an average net sub rate of $13 x 50k is $650k a month in subscriber fees. Going from 3k to even 25k sub base is going to dramatically increase their overhead from $430, but at the $650k range the economies of scale should kick in. Obviously, not knowing their true incremental cost per subscriber makes this speculation, but I think a 10 fold increase in operational activity and only a 50% increase in overhead is achievable, I don't see how they can leverage much more than that out of operations given their small size at the moment. Those types of leveraged profits kick in at much higher subscriber levels IMHO.