I'll be the cheering optimist here. IF, and I say it's still a big if, they release the long awaited financial statements and it doesn't show massive dilution by the company, and that expenses are under control, this will be viewed by the whole world as potentially successful venture. They could even currently show negative cash flow, with a plan in place and already working to reduce that negative cash flow. Something such as previous 20% loans being refinanced with 7% for example. Lots of successful companies are on the negative cash flow early on, but the successful ones show, and have in place plans and operations, to reverse that.
The revenue potential is tremendous. Only down sides are maintenance and up front install. Don't be surprised though if a cash strapped county sees how successful it is and tries to slap an operational fee to uses. Let's, don't go there yet, but governments at all levels are greedy. CPSZ has the potential to take a % of all these transactions with the exception of ther final one to the released prisoner. He can take it all in 1 lump, or have the option of retaining the card as an essentially prefilled ATM card that transaction fees apply for use after the initial use. Those that the can get placed in city and count courthouses for fines and utilities, have tremendous potential for revenue. Americans are lazy, and rather than carry a checkbook or cash, will throw it on their CC. Think, when you finish your TurboTax, you could get your return "instantly" by paying a "small" fee to Discover or Visa, or wait a week or 2 for it to be routed through the IRS and direct deposit to your account. For the convenience of a few days with the money, many will pay the fee. I don't. I'll wait a few days. That impatience of the consumer, is part of the gold mine formula to get these in the court houses for utility, tax payments, hunting/fishing license, etc. Besides, wouldn't have to stand in the inevitable line.
So where could cpsz be in share price if they did and showed all that. As they say, the $64,000 question for you that can remember the show. But I see no reason for it not to be well above a penny and comfortably in the mid dollar range. Safely and wisely expand operations keeping the expenses of new sites under control and this could and should approach levels for big board listing.
A lot of ifs involved in this, and the hodges/sylvestes are going to have to make a major change in how they view and treat the public side. We are why they have any potential at all and we deserve to be kept informed regularly of progress and business operations. If they are going to employ a PR firm, then they need to select one with some imagination and ideas how to advertise. For those who didn't view the u tube of their kiosk advertising to get lawyer to sign up, I suggest you do so. It is a sorry, amateurish, laughable attempt. Quite embarrassing in fact.
They need to grow the company but must be careful in that growth. I have in the past used Movie Gallery as an example. It's HQ was located hear here. They wanted to expand and bought Hollywood video I believe and some other smaller ones. Unfortunately, they also got the debt of the smaller companies they acquired. MG had great revenues, stores everywhere, booming business, but buried in debt. That debt killed them and Movie Gallery no longer exists. CPSZ must make sure they control the debt.
That's my take for this , "will be sunny morning" when the sun comes up. In the meantime, those pirates of pinks will roll in a couple more times, make all kinds of wild claims about revenue etc, pump the heck out of this, get some sub penny rises for their flipping operations. Oh and then disappear as quickly as they came.
So why am I "writing a book on a Sunday morning?" Back surgery does wonders for a person's wake/sleep cycle.
I believe the coming week will be a nothing week. Perhaps lots of shares going back and forth, some smaller efforts to flip, but this time next week, we probably be in about the same situation. What is going to be interesting, if the PR firm announces a date for the release of the financial statements but gives no content info, or if they release some selected tidbits from them. Trading around here is going to get real interesting. Surf, lawdog, sandls, and other longs, are going to potentially be faced with some real tough decisions about how long are you going to hold. ME too of course
Well enough for now. Another cup of coffee, and I'll sit on the back porch watching the sun come up soon.
DR
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