Replies to post #13325 on Simply Inc. (SIMPQ)

[mdimport]

MY gut tells me that's what will happen, but the stock price will fall shorter term as new shares are sold to complete the plan.

Where I'm conflicted is what I would do if I were in Joseph Ram's position. The natural path for any company is drive down operating costs and increase sale prices for the goods / services on offer.

In $IFON's case revenues and earnings on the big picture have been basically flat, and gross margins have been cut to what looks like a stable 9.8%.

The question is does $IFON benefit by holding onto its hardware business and completing the software to boost margins, or is it better off selling the hardware business (one-time cash build on the sale) and focusing on the software?

Advantage to holding onto the hardware:
- there's a ready market to sell the software into

Disadvantage:
- there's no traction for the product in the US market, and outside the US currency fluctuations can have an outsize impact on what's a relatively tiny revenue stream.

[SpencerTracy]

cjf:

About possible R/S:

Hope it doesn't happen!

A little history: From April 2011 to April 2012, IFON traded under $1. On April 2, IFON was to be delisted unless the company filed an appeal. In that case the company got until April 12 to present their case to Nasdaq as to why the company believes its stock can rise to above $1. After the hearing on April 12, Nasdaq allowed IFON listed. On May 2, IFON reported their quarterly results. The stock gained on that day more than 50% to close at $1.25 (from 0.8 to 1.25) on 1.6M volume!

Not saying that the same thing will happen this time. However, the software launch may be acceptable to Nasdaq to allow continued listing!

I hope the new software will be a great success fôr the company!