Replies to post #20512 on Alkane Inc (ALKN)

[TSXminer]

You're going to think this is a really stupid question, but can anyone tell me what "OT" means? I thought I was up to speed on internet acronyms, but I'm not familiar with that one. TIA from TSX.

[eibbanker]

I disagree.

Do the homework here. Strategy is either retail (of other peoples diamonds) or exploration (then maybe sale).

Look one of the most successful ones- Zales - who have massive distribution channels, brand name, buying power, advertising, etc. They do $2 bill in sales and market cap of $1.2 bill as they have a strong retail PE ratio of 12.85

This company has min 620 mill shares (probably more) at .03 so just using the same (EPS ratio which is definitely not correct), NSDM would have to have Earnings (not revenue) of $1.5 million to be at it's current valuation. No one knows Gross Revenue after paying out their suppliers (which would be alot more than the strong buying power of a main player). Then, factor the costs of which they are trying to finance exploration costs out of it.. - I figure, it would take 3 yrs to break even - ie no earnings out of online marketing of other peoples diamonds.

Bottom line is that this is not the business venture that people originally got themselves into, nor is it worth the current valuation for a long time to come....

Just think about it.

[sortagreen]

Dear King, It's been a long time since I've done any acid, but apparently you've kept up with my share...

look for this company to take in about 1.4 to 1.8 million the first year alone,maybe better

How many diamonds and what kind of margin are you figuring? What percentage of the online market will we need to take and from whom? Do you know anything about this business plan? Do you have something in the way of analysis that indicates this and leads specifically to these numbers? Why not just say $1 trillion?

Is the whole investment community so blind that they can't see what you see here? (Standing next to that talking garden gnome with the shovel full of cash as it were...)