I just posted this on IHUB. Of course, it's an "
Post# of 3844
Posted On: 12/11/2013 9:03:19 AM
I just posted this on IHUB. Of course, it's an "IMO" post.
Post # of 32885
A different look at how Preferred stock WILL NOT impact the share structure (IMO of course)
Preferred A are owned by those closest to the company who have a vested interest in seeing the company succeed and be up listed. This is simple protection for their time invested in growing the company. If the model fails, then some of their assets are protected. It's that simple. Preferred IMO will not be converted any time soon, if ever, and it they are it will be much later and at much much higher prices. IMO they simply do not get converted. The simple fact is that conversion would be counter productive to growth. And all shareholders here (including myself) understand that EWSI's leadership is hell bent on rapid ramp of revs to fundamentally justify a higher valuation, which in turn will allow for bigger and better deals!
Preferred B has a 1000/1 voting right over common and is simply voting control assurance for leadership.
Zero Cost options for CEO were compensation related and allowed for debt management on the balance sheet . Again, IMO (as a shareholder) these will not be converted for a very very long time, if ever. This would, plain and simple, be counterproductive to growth at this stage of their development.
Cash flow positive possibilities are closer than most think (again IMO). Assuming a static 25 percent gross margin, and 1M monthly operating costs (which is a moving target as they grow of course), then the company would currently need to accomplish 4M run rate monthly (12M Qtr) to be break even. I think we do 7.5 - 8.5M current Qtr. If growth remains at 50 percent or more, then IMO we are cash flow positive by Q2 2014 at the latest...potentially Q1 2014. Why? Consider the following:
eWasteCC development costs done. Product will continue to gain attention and bring in higher margin revenues .
SURF will be operating in bigger spaces next year and will significantly increase throughput and revs.
2TRG numbers are clear in the first filing. EWSI is "resetting" the 1.2M dollars worth of recycling equipment they just acquired and can possibly ramp production from 12M tons to 75M tons annually!! For processing facilities it's all about feedstock and low cost logistics. EWSI has the feedstock, and 2TRG is absolutely perfect for low cost logistics.
E-Plants coming on line in 2014 on at least three separate continents. This should provide a steady repeatable stable gross margin revenue stream.
eWasteTRACK may in fact be almost ready for commercialization. This is just like any other software program in that costs are front loaded, and then subsequent gross margins should be relatively high. The e-waste industry needs a product like this badly to support state initiatives such as the one in CA that has over 320M earmarked for the proper recycling of CA generated e-waste. eWasteTRACK could easily be a home run for the company once it is introduced to market.
Organic growth will continue.
Acquisitive growth will continue.
EWSI is tremendously undervalued at current PPS. IMO it could and should be in the 20 - 30 range right now based on projected and proven growth.
No insider sells since inception (May 2011)
Fully reporting/fully compliant SEC company
Fully audited
Have a great day all..
Post # of 32885
A different look at how Preferred stock WILL NOT impact the share structure (IMO of course)
Preferred A are owned by those closest to the company who have a vested interest in seeing the company succeed and be up listed. This is simple protection for their time invested in growing the company. If the model fails, then some of their assets are protected. It's that simple. Preferred IMO will not be converted any time soon, if ever, and it they are it will be much later and at much much higher prices. IMO they simply do not get converted. The simple fact is that conversion would be counter productive to growth. And all shareholders here (including myself) understand that EWSI's leadership is hell bent on rapid ramp of revs to fundamentally justify a higher valuation, which in turn will allow for bigger and better deals!
Preferred B has a 1000/1 voting right over common and is simply voting control assurance for leadership.
Zero Cost options for CEO were compensation related and allowed for debt management on the balance sheet . Again, IMO (as a shareholder) these will not be converted for a very very long time, if ever. This would, plain and simple, be counterproductive to growth at this stage of their development.
Cash flow positive possibilities are closer than most think (again IMO). Assuming a static 25 percent gross margin, and 1M monthly operating costs (which is a moving target as they grow of course), then the company would currently need to accomplish 4M run rate monthly (12M Qtr) to be break even. I think we do 7.5 - 8.5M current Qtr. If growth remains at 50 percent or more, then IMO we are cash flow positive by Q2 2014 at the latest...potentially Q1 2014. Why? Consider the following:
eWasteCC development costs done. Product will continue to gain attention and bring in higher margin revenues .
SURF will be operating in bigger spaces next year and will significantly increase throughput and revs.
2TRG numbers are clear in the first filing. EWSI is "resetting" the 1.2M dollars worth of recycling equipment they just acquired and can possibly ramp production from 12M tons to 75M tons annually!! For processing facilities it's all about feedstock and low cost logistics. EWSI has the feedstock, and 2TRG is absolutely perfect for low cost logistics.
E-Plants coming on line in 2014 on at least three separate continents. This should provide a steady repeatable stable gross margin revenue stream.
eWasteTRACK may in fact be almost ready for commercialization. This is just like any other software program in that costs are front loaded, and then subsequent gross margins should be relatively high. The e-waste industry needs a product like this badly to support state initiatives such as the one in CA that has over 320M earmarked for the proper recycling of CA generated e-waste. eWasteTRACK could easily be a home run for the company once it is introduced to market.
Organic growth will continue.
Acquisitive growth will continue.
EWSI is tremendously undervalued at current PPS. IMO it could and should be in the 20 - 30 range right now based on projected and proven growth.
No insider sells since inception (May 2011)
Fully reporting/fully compliant SEC company
Fully audited
Have a great day all..
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