Replies to post #89001 on NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

drmykie, that is indeed the question.

(Edited to make it clear that EARNINGS will be key)

What will the revenue (and earnings) be?

Exciting news, REALLY exciting news, will cause a spike in the PPS and everybody here could be really really happy, but what will sustain growth in the PPS will be actual bottom-line revenues (and earnings).

So, what would be an exciting P/E ratio for this ChangeQuake technology if Qode catches on and grabs a lot of investor interest?

50?

So, for a billion shares to each be worth a buck, we'd need, what, .02/sh in annual earnings?

$2,000,0000 in earnings?

What kind of revenues would that take?

Off the cuff comments above, didn't even use a calc., probably way off base lol

jonesie

p.s. Good theme for discussion though!

[cjzak]

Doc: I just gotta ask.(I know it's not really my business but you're posting that you bought soooo...) If you feel this way, why the heck are you still buying? Maybe you should wait a little bit and see if it starts to go up on some good news or something. If it's that diluted then we all are in the same boat and it's tilting but not completely underwater yet. Hope all is well with you. Cj

[movieguy]

Drmyke3,
I believe it was at the beginning of the SHM and it was Chas Fritz that did a brief calculation of the projected market size of potential bar codes and if they were able to capture just 5% of that market, in other words, register only 5% of the bar codes it would mean billions of dollars in revenue. He did the calculations on a flip chart, it wasn't a slide so you won't be able to find it. I think the cost of registering the bar code was based on a couple of hundred dollars annually, so a very reasonable cost for manufacturers. Maybe others remember the specifics of what was discussed.

MG

[jonesieatl]

So drmyke ...

... re: "Now what kind of revenue is it going to take to produce the share price that some people are predicting?"

Have you seen the answer yet?

3% net margins and a 50 P/E gives us a buck a share on 2/3 of a billion dollars in revenue.


Fidelity screens out 307 companies as "software" companies, and out of those, 12 have a P/E est. for this year >= 50, and if I screen down for those having a profit margin of 3.2% (the market median for ALL companies) or better, I get left with 6 companies.

So, it's possible.

jonesie

p.s. I suppose all of this will be moot for a while if Rupert or Chernin announce they're buying NEOM for $2 billion today, or whatever else is going to happen in 10 seconds from some time ;) But it's about time I went thru the numbers myself anyway, and even got an idea of what the company is projecting for margins, net and gross.

p.p.s. The 6 companies are:

Company----------Sym---P/E'06est.-----Prof.Mrgn.

ADVENT SOFTWARE ADVS --- 73.9 ---------- 8.4%

ELECTRONIC ARTS ERTS --- 97.2 ---------- 7.3%

INTERACTIVE INT. ININ -- 52.8 ---------- 5.4%

CATAPULT COMM CATT - 123.9 ---------- 5.9%

SALESFORCE.COM CRM ---- 159.6 ---------- 5.1%

ULTIMATE SFTWR ULTI ---- 61.9 ---------- 3.6%

[bodreaux]

Maybe the 10 bagger was in the O/S and not the PPS?