Replies to post #216 on Bayport International Holdings Inc. (BAYP)

[Memphis Guy]

EXTO is moving along nicely. Adding an entire automotive group! 46 total dealerships in this group!

[stervc]

Learner1156, with that EXTO News...

Thanks for posting. That is big news to me as it definitely puts some more direction as to the potential residing in EXTO.

Sam Swope Auto Group is the biggest new and used car dealership in Kentucky and Southern Indiana. They sold over 100,000 cars in 2006 and is rated #1 for 2007 and on scheduled to at worse case, mirror those numbers again.

Now with 100,000 cars sold, with a charge of $2.00 per text, that's a total amount for "potential" Revenues of $200,000. However, I think it is expected that a minimum dialogue has to exist which would normally result in 3 text messages to complete the transaction of buying/selling of a vehicle. At $2.00 per text, that now brings the total potential for Revenues up to $600,000.

Hmmmm? Now that makes it easier to derive a potential valuation. This news is very promising in my opinion.

v/r
Sterling

[surfking]

The New Dealership means NOTHING.....unless people text. I can get a million different manufacturers to let me import their products, but the bottom line is, will they sell, and then would there be enough revenue to cover expenses and then a profit. EXTO news releases are big on adding cars...but nothing on the $$$ coming in from texting, and what is left over after paying fees, etc. EXTO has more than enough cars to be making money,if people wanted to text.
Presuming Sam Swope pays $199 for each dealership (or is that categorized as 1) 15 times $199 is $2985 (there may have been a deal just to get them to list) 100,000 cars sold hmmmmm...let's say 80,000 vehicles are new and 20,000 are used (which is about 3.5 used cars sold per day per each dealership....and is reasonable). Virtually no one is going to text for a new car, so most texts will come from used cars. Of 20,000 used cars they sell, let's say 10%, which is reasonable, are sold as a result of a text message. That's $4000 revenue per year, less fees EXTO pays. (EXTO has a loss of $773,000). Let's also remember, Sam Swope is not cancelling all the other venues they use to sell their cars....they are just trying EXTO out. It in no way means Sam Swope thinks texting for cars is the future....it is just another way to see if they can sell a car, and $2985 is cheap just for some exposure.
You can list 1 million cars but if a huge % of buyers don't text to buy a car (texting may not cost the seller money, but it costs the sender money). Will most people prefer to buy cars the way they do now, by calling a dealer at their leisure and not be hounded by sales people, or visit a dealership on their own, or read about the car online or in a magazine or newspaper, and then visit a number of dealerships....shopping is also an experience.
In Vancouver, there are billboards on buses, ads on TV, and David Dion's father has been driving a big vehicle paid for by EXTO with text4cars.com plastered over the vehicle. It's not that the public hasn't been exposed to text4cars in Vancouver...they simply have chosen not to text for their vehicle. Yup, it is a great idea...but good ideas don't always fly if people don't want to take the trip. The question is, is this a trip that enough people will take, to at least pay for EXTO's expenses.