Jdwcapital
SanjBot
OP
:
Regardless of their little, current, sales numbers, revenue is growing and will *likely* continue to grow as they develop the business. Currently, the firm is gross profitable, meaning the core business model is sound. The fixed costs of the business are quite high relative to sales (makes sense its electronic manufacturing: machinery, engineers, researchers, etc.). This is observed on the Income Statement in the high amount of money sunk into R&D, Marketing, & Salaries. With enough growth, revenue will eventually exceed these costs generating a net profit for the equity holders. The issue is how does the firm increase their sales so rapidly, after all the product is quite niche. Management have decided to allocate more capital towards marketing including the addition of the role of Chief Marketing Officer. The recently employed marketing officer has had a successful career in the electronics manufacturing industry (senior postions at Qualcomm as well as prior directorships, and board memberships on smaller companies) which will aid him in ultimately selling and understanding the product. With more money to devote to the use of increasing brand recognition, it is not unreasonable to expect at for least sales to grow at its current rate. Open to chat more about this, I believe it is a undervalued right now and I do maintain positions in the company. However, I am not trying to convince you to buy, more so simply to help you understand my thesis.
SanjBot
OP
:
I agree. it's technology of the future, but it could go either way. I'm watching closely. the next ten years are very interesting in all areas of semi's and technology as a whole.
Jdwcapital : @SanjBot When you plant a seed, do you expect to comeback the following day to see a tree?
SanjBot OP : I'm really rooting for this company, believe me, but this says it all . absolutely no revenue. I'm watching with interest.
151786376 : This is shit compmay
Jdwcapital 151786376 : Without a doubt right now it is, which is reflected in its price. However, I believe it will be worth more in the future.
Jdwcapital SanjBot OP : Regardless of their little, current, sales numbers, revenue is growing and will *likely* continue to grow as they develop the business. Currently, the firm is gross profitable, meaning the core business model is sound. The fixed costs of the business are quite high relative to sales (makes sense its electronic manufacturing: machinery, engineers, researchers, etc.). This is observed on the Income Statement in the high amount of money sunk into R&D, Marketing, & Salaries. With enough growth, revenue will eventually exceed these costs generating a net profit for the equity holders. The issue is how does the firm increase their sales so rapidly, after all the product is quite niche. Management have decided to allocate more capital towards marketing including the addition of the role of Chief Marketing Officer. The recently employed marketing officer has had a successful career in the electronics manufacturing industry (senior postions at Qualcomm as well as prior directorships, and board memberships on smaller companies) which will aid him in ultimately selling and understanding the product. With more money to devote to the use of increasing brand recognition, it is not unreasonable to expect at for least sales to grow at its current rate. Open to chat more about this, I believe it is a undervalued right now and I do maintain positions in the company. However, I am not trying to convince you to buy, more so simply to help you understand my thesis.
SanjBot OP : I agree. it's technology of the future, but it could go either way. I'm watching closely. the next ten years are very interesting in all areas of semi's and technology as a whole.