Espial Group Inc ESPAF

RE:RE:RE:Espial is getting spanked!

[JonathanJSmith]

$5/sh? LOL.

Dude,

What are you basing your estimates on? Addressable market? At $5/sh, their MC would be ~$185MM. Current annual revenues are ~$20-25MM (incl. Arris) and they are LOSING money. Add to that the extra R&D money they will be spending on the Arris integration and enhancement and you're looking at substantially increased operating costs over the next year (as Dolvane mentioned on the CC when they acquired Arris' WHS).

Do you really think they should be valued at a 7x+ multiple of revs? Be realistic. Currently, they're lucky to enjoy a $75MM+ MC. In fact, if it werern't for all that cash on hand, they'd be trading below $1.00. As mentioned in an earlier post, I'd be a buyer at $1.50 a share - and I wouldn't even buy much as when I usually buy, the price precipitously drops soon afterwards. Go figure.

As you mention, they "appear" to have a bright future IFF they are successful in converting potential customers to real ones; however, their conversion time seems to drag on endlessly. Consequently, there appears to be no hurry to go out and purchase this stock. I'll wait.

Cheers and good luck with your holdings.

JJ