VIDWRX INC SMDWF

Risk vs Reward

[CDJ9292]

Since the activity has died down on this board I figured I would throw some numbers around to get an idea of other shareholders thoughts/opinions. 

Ok so its not a surprise everyone is dissapointed with the current share price but I took another look at some key numbers this afternoon and this is what I came up with -


The new Revenue Preformance Managment System seems to be working quite well and has led managment to forcast 10MM in sales/revenue by year end 2016, which is actually lower than the 11MM forcasted by UBIKA (see link below) I will use 10MM for my math.
VID has a burn rate of just over 4.5MM at the end of 9 months Q3 2015. Using 6MM as an annual rate, if all else stays equal, that leaves them with 4MM net profit by fiscal year end 2016. Current shares outstanding are 77,188,080. This would leave the company with an EPS of 0.05 or, if you use the fully diluted share count of 112,128,259 an EPS of 0.035
Using a modest 10X multiple for P/E this leaves you with a 0.50 share price or 0.35 by the end of 2016. Being a stock that is traded on the Venture Exchange, I would assume sharholders have a pretty high risk tolerance. My conclusion would be that the risk is worth the reward.
Full disclosure I have been acquiring shares for the past 3 months at sub 0.10 levels. 

UBIKA report - https://smallcappower.com/wp-content/uploads/cloud.modyocdn.com/uploads/352b4e70611b11e5a50b1312f2579f85/original/VidWrx_Full_Report_-_September_2015_.pdf

IMHO

[tor27]

Hey CDJ - great post.  A couple things to point out; 1. They forecast 10mil in sales.  The key # will be revenue.  They need to start converting sales to revenue.  I anticipate 10mil of sales and 4-6 mil of revenue.  Either way it looks great and momentum will carry forward to 2017. 2. I think shares outstanding will be closer to 150-170 mil once all is said and done

[CDJ9292]

thanks tor, with 10 million in sales i would still be very pleased to see 4-6 mil in revenue. i also agree with the 150-170 million shares when all is said and done, which isnt bad at all.  i am looking forward to reading about the TubeMogul deal, hopefully will have something out early in the new year. i believe 2016 and forward we will see tremendous growth from this company as the picture

[HPD]

Here are my questions and concerns 1) Why are the backlog sales not being converted to revenue on a faster pace? If the turnaround time is 14 days and assuming they invoice promptly for a 30-60 day pay period and only 190k?? Why hasn't backlog from 3rd quarter not converted to revenue? Can they not keep up with demand already? What is the 6M per year being spent on? 2) I expect about 1

[CDJ9292]

hpd, i strongly agree with your third point on the press release. i believe such a pr could clear up some questions regarding your first point as well. page 10 on the UBIKA report actually provides a detailed summary of why some "14 day turn arounds" see delays. i dont like mentioning other stocks on seperate boards but your "long haul" comment instantly reminded me of another

[retired2007]

Where is all the cheerleaders?