RE: RE: RE: RE: RE: AdvertisingI suppose that their $5M quarterly budget for advertising could be reduced to $3M. If that were the case, and they could maintain their sales, not grow them, than they could conceivably generate almost $3-4M/Q x 4 = $12-16M per year. If that is possible and they were to head towards that scenario, this company could be worth maybe 6-8x's that number?
Low - $12M x 6x's multiple = $72M (72m divided by 58M shares = $1.24)
High - $16M x 8x's multiple = $128M ($128m divided by 58M shares = $2.20)
Median = $1.72
Of course, this is pie in the sky numbers. Coastal is an investment in the future but their valuation seems to be based on their current financials, for the most part. R. Hardy hopefully has a good grasp of this and I would assume that Kinderhook has an even better grasp on the industry numbers and the potential. I can't see any other reason why Kinderhook/Contango/Shah would buy 4.8M shares in such an illiquid company other than there was some sort of investment thesis that is different than the status quo.