When Gross Profit that Weighs in at 62% of revenues,
posted on
Nov 17, 2009 11:32AM
you've got a rather kick-azz model.
As the settlements from the Colorado 19 start to roll in it will become that much more apparent, and to new eyes, this is quite attractive....with 170 or so still lurking.
7 for 7 was a good first round strategy, getting the company profitable and solvent.
Had two or three of the infringers decided to go the distance with EDIG, they could have been embroiled in a 2-3 year circus. You go for it when the reward justifies the risk. In the meantime, clean up at the tables.....settlements in months.
That appears to be the strategy at this point in time from where I sit. With 19 now in the legal system, at an average of $1.6 million/settlement you can expect EDIG to hit around $31 million over the course of the next 12-18 months, if not sooner, with a net close to $19 million in profits....based on its IP litigation alone.
What type of gross revenues do most companies need to generate to net that?
$200 million, $300 million???? In this economy? They are lucky to be breaking even.
A good PR firm can make this case easily, and upon their recommendations to new investors backed with results by DM, the pps should reflect that.