Re: The daily decree has apparently gone out again....
in response to
by
posted on
Dec 19, 2006 05:44AM
You are right, Ron; it is quite a paradox. The share price will now most likely be driven only by quarterly results as opposed to news of individual signings. The only other events that might make it move substantially is a blockbuster signing (like an IBM type name); acquisiton or merger; or big news out of Texas.
I have also pondered the thought that, due to the change in acounting and revenue recognition for their interest in PDS, that Phoenix Digital may now be used with a buffer/accordion effect, to flow funds through in such a way as to "smooth" quarterly revenues. It is a bit hard for me to articulate exactly what I mean by that in this forum (and in a hurry), but from an accounting sense I can envision the scenario (and it could potentially be useful in 'managing' those quarterlies).
In any event we may simply be at that stage where the market has valued our future revenue stream based on a (limited) history of signings, and then discounted that stream back to arrive at a present value. Only future events and more history can alter those assumptions. So we wait, I guess.