Coastal Contacts Inc COA

Advertising

[Marko555]

They are certainly running an effective advertising campaign, just added 15,000 people to their facebook group in the last 3-4 days. 

 
Marko

[FncialHrmitCrab]

Yeah, Ive been following that too Marko.  Of course there's certainly nothing scientific about it, but theyve gone from 4,500 facebook followers in march to 12,000 in september to 35,000+ now.  There's little mystery in what's happening, they're offering free glasses promos to people  who "like" Clearly Contacts on facebook.  I think for a cost

[FFHWatcher]

Ditto on profit.  Wonderful cash flow move but it is mostly just expanding payables.  Anybody know why SGA was $1M higher than what I had predicted?  As I recall, it may be related to credit cards fees or something, moving some expense from COGS to SGA?Onto another topic.  Did anyone put any thought into TUSHAR SHAH joining the board of Coastal?  What about his company

[FFHWatcher]

Ok, this is moving.  Lots of upwards pressure with seemingly unlimited desire to accumulate.  1.5M shares just traded and only a couple of holders have that many shares.  I don't think NCIB of that magnitude is permitted as it is restricted to a certain percentage of the daily volume and I think 1.5M shares would breach that limit :-)Maybe someone, such as Kinderhook is adding?&

[FncialHrmitCrab]

It seems to be you and me FFH.  No idea what's going on other than I think its about time that this stock had some excitement.As for valuation, I would think this is the proper value unless they can show that they will actually sell their product, as opposed to basically giving it away.  Im not opposed to expectations driving this one but I really can't get a handle on what

[FFHWatcher]

I 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 =

[FFHWatcher]

Bingo.  I wrote the posting on Oct. 22, 2010 that 376,000 shares had traded that day.  As it turns out, it was Kinderhook who purchased 261,700 of those shares at $1.45.  So, it is safe to say that his valuation is significantly higher than that number.  Belkin also added another 3,000 shares on top of the 288,325 shares that he had already purchased on Oct. 19th (not Oct. 20th