Smartcool Systems Inc V.SSC.H

RE: Go Back to Google days..Morgan

[stocktalk2]

The difference between the Google's, ebay's, etc. is that they were unique conceptually and could raise massive amounts of capital based on their concept. There are many different products like SmartCool out their primarily in Europe, in one form or another. The problem with these companies is that in order to be attractive enough for a company to try their product, the revenues are limited by the current usage cost . So, I think you are comparing apple to oranges. The profit margins are extremely low even if the customer would buy the unit outright. In this case it is not cost effective for the customer to do that so they rent the unit instead of sell a unit to the customer. That's why this concept worked as a private company. They were only interested in customers that bought the units outright. The strategy being used may show progress in building a customer base, but to use another more realistic high tech comparison, like data management, it doesn't matter how many customers you have, or even how much growth you get in sales, if you lose money on every unit. Last but not least, comparing a junior company with $180,000 in sales to Google that came to market at $100 a share, has over $11 billion in cash, YOY quarterly earnings growth of 176%, yet still has only a 13.32 price/sales ratio should may be just a bit of a stretch don't you think.