Re: Analysis of the current 10-Q - richardo / Cautious / DaBoss..John
in response to
by
posted on
Aug 28, 2007 12:00PM
I agree with your comments.
Keep in mind in order to achieve profitability, using a 30% gross margin, which may be high depending on the distribution of direct and distributor sales, we will need revenue in the range of $10-14 million based on the current opoerations cost.
If we reach a breakeven point, then we may see a substantial improvement in the share price, perhaps in the $1.00 range, but a modest profit may not itself raise the price to that level.
Even an eps of $.01 would require an additional $7.5 million in revenue on top of the above mentioned amount keeping most of the other costs as they are.
Now, what would $.01 eps do to the share price? I don't know but certainly emotions would play a part in the increase as well as forward looking successes.
The primary impact would result from DM actioins, settlements, etc. That may directly bring about a price in the range of $2.00-10.00 depending on amounts being discussed and/or settled.
Good luck to all of who have been so patient.