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Beachfrontbuy

03/23/10 7:01 PM

#816 RE: wakl #812

25 per quarter is a hard thing to think of right now, but like all business, it needs to be on a sliding scale. I think 5 years from now, a 25 million dollar quarter will be a dissapointment. The beginning will always be the lowest. Think about it like paying your mortgage over 30 years. You pay the same ammount each month, and in the beginning you give most of it the the bank for interest. Year 29 you are paying mostly against your loan and in to your equity.

So if you look at their projections on a linear sliding scale. It wouldn't be $100 for the first year, 100 for the second ... etc.

It would be more like $50 million for the first, $75 for the second, $100 for the third, $125 for the fourth, and $150 for the fifth. (And this is being safe).

Then your quarters for the first year may be something like:

Q1: 5 million Q2: 10 million Q3: 15 million Q4: 20 million

So with this thinking, it would go from a 25 million for the first quarter to 5 million.


I would predict a more aggressive curve towards the middle and on it's way up, because of an eventual increase in growth and demand.

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Longwinded

03/23/10 7:07 PM

#818 RE: wakl #812

My math was based on hitting sales of $500 million PER YEAR by 5 years from now. (It has the additional benefit of causing the Fossil to reach for his special Jim Jones edition of the Kool-aid.)
Those figures might possibly be a bit optimistic. But if you're willing to make it a cumulative goal over the whole five years, that should be easy! :)