Tuesday, January 3, 2012

Share Count

According to Olie77, a trusted moderator on I-hub, we start the new year with 17,258,197 shares outstanding. 
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SkunK Perspective

No matter how I survey the landscape, a $200M market cap always seems within sight - on the horizon.  Maybe that is my prejudice, but that number always seems to come up when I do my figuring.  Even when the company's revenue makeup seemed much different that number seemed to appear.  For instance looking ahead to this year - can you see profits of $2, 4, 6, 8M in the four quarters of this calender year - for a total of $20M in profits for CY2012?  Times a conservative P/E of ten and we get to $200M. 

Not so optimistic?  How about a $1, 2, 3, 4M with a total of $10M in profits and a more realistic P/E of twenty?   We still get to a market cap of $200M.

WHY THE mind EXERCISE sKUNk?  What is your purpose? 

Five dollars a share is the bench mark.  This is the gold standard that all Pennys wish to achieve.  You open yourself to new exchanges, new financing and new investors.  With a $200M market cap you need 40M shares or less to get to 5 dollars. 

But sKUNk CAN'T YOU JUST AS EASILY HAVE A $20M profit year and a P/E of 50?  That would give you a billion dollar market cap and 200M OS with a $5 dollar share price?

Yes, and you may be right.  I prefer to activate the "dilution minimal concern" button in the 40-50M share range.   You may chose the 20M or the 200M share range.   My point is concern should be based on "Can we still get to $5 a share from here?"  And your answer should be based on your intermediate market cap projection.

Just some thoughts to ponder on a cold, short week . . . maybe a good night to put the applejack outside.

SkunK

8 comments:

Anonymous said...

Is the 200 Million market cap an intermediate target...Is the plus 2 billion target still a long term target??

Anonymous said...

Lowest dilution ever

Skribe said...

Thanks Mr. Skunk! Keep up the great GERS blog.

Skribe said...

Thank's Ollie for that O/S count!

Anonymous said...

wishfull thinking but this wont go near $5 a share because Kevin is will never let it go. He is a bleeder and will bleed this down to .0001 again its a shame

Anonymous said...

and it seems to me your ok with dilution to 40 million ....thas almost a 150% dilution....thats a lot and you say thats the lowest dilution ever ...not percentage wise ...17 million shares from 14 million shares thats 20% dilution...that to me seem like we are headed in the wrong direction yet again...its sad because they are making money now so it seems to me as if kk doesnt have any intention of making this the great company it could be in the right hands

Anonymous said...

and here I was wondering where nobody was

Geeeeze Whiz said...

Look, He is saying the goal is to expand the investor base. You do that by going NASDEQ. You do that at $5. He sees a mid-term potential $200M market cap. That means if you keep the OS below 40M we can get where we want to go.

The company is growing. Revenues are growing. Profits are growing, so stop with the sweat grenade stuff.

Simple as that.

 
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