analysts paradigm has 25 cent and cannacord has 26 cent target, from june and july. From JulyJune user metrics – Poynt’s user base grew to 8.5 million, anincrease of 9% MoM and 166% YoY. More than 70% of the monthlyuser growth was driven by AndroidAverage monthly queries per active user were strong at 30, up froman average of 22 reported in Q1/11. Active users, however,represented 31-32% of the user base, below our 35% assumption.• Outlook – For Q2/11, we expect revenue of
.84 million and anEPS loss of half a penny. This includes
.7 million in expected adrevenue. Q3/11 also appears to be off to a good start with 9.1million users as of today based on 25K average daily adds, which ison pace to report 2.4 million adds or ~11 million total, in-line withour estimate.• In the short term, we expect Poynt to launch several new initiativessuch as TimesPoynt, a joint venture in India (on track for Q3E). Aswell, the current infatuation with patents following Nortel’sblockbuster auction could be a source of upside potential for Poynt.ValuationWe value Poynt using DCF analysis, which employs a weighted-averagecost of capital of 25% and a terminal growth rate of 4%. Based on thisanalysis, we arrive at a target price of C
.26 (unchanged)