Gale And TelefonicaWhen Lingo Media will start to generate revenues from partnership with Gale and Telefonica, some will bitterly regret to have sold their shares just because 2015 Q4 results were a bit disappointing. Yes, they were, but not that much, not enough to retract the SP by 33% IMHO.
After talking with a representative of Lingo Medio, they want to grow their sales up to 10-20 million dollars in short-term. With the gross margin they have, it gives us net income of 5-10 million. The PE would end up between 16cents to 32cents (with 31M outstanding shares), considering they keep the same margin until then. With a PE of 15, we end up with a SP between 2.40$ and 4.80$.
Question remains though: will they succeed to grow their sales at that point? I hope but only the future can tell.
GLTA