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Retirement

08/19/09 12:27 PM

#348 RE: riskanalyst #347

Riskanalyst ,,,,,(maybe you've heard this)If you had ever talked with the IR group ,Chesapeake, They'd explain the business model....You'd have a better understanding . PWEB promotion expenses bring in users who try the site for 1 free month. Roughly for every 4 trials, say 1 stays and pays the $80/month. That covers the costs. Now after the second month that 80 comes in every month thereafter as revenue will little cost.(the infrastructure buildup costs were also tacked on in Q2, giving PWEB coverage to 100M in rev) As the base of users builds in quantity, it will eventually far exceed the promotional costs. Bringing revenue straight to the bottom line. Every Quarter with its fixed promotional costs will be covered by a larger and larger base of monthly paying users (where that 8+M in revenue came from in Q2) Obviously the profit line will be a steady building stream of revenue.
I got a nice fill @ .18 today. Will buy more if folks will sell here...