MMEG good business analysis here>
How To Determine MMEG Value...
First, what is all the talk about Ad Impressions? Well, they do represent a true value and boy does MMEG have a valuable asset here! 40M ad impressions per month! What’s that worth? Let’s take a look…
Ad impressions are usually purchased in 1000 units and per the data below, the average going rate for a static display ad is $2.80 per 1000.
If you do the math as this online calculator has done for us, you get the following:
Now take that value of $1,344,000 x an average S&P Price to Sales ratio of 2.01 and divide it by the number of outstanding shares (267,135,483) and you get a price point of .0101…
BUT WAIT!! IT GETS BETTER!!
Bijan Sabet, a venture capitalist at Spark Capital, which has invested in several Internet companies, including Twitter, FourSquare, and Tumblr, says his firm often considers $2 of annual revenue per user to be an important target threshold for STARTUP companies. Although they’re dated, here are some user values for well known established companies:
With all of that in mind, let’s use a conservative number of only $1.00 per user. At 10,000,000 users, that’s $10M in value. Applying the same logic and calculations from above when we assessed the value of ad impressions, and you get .0752…
UPDATE! The website now says 45M impressions per month, so the ad impression number above moves from .0101 to .0114
Now add the .0752 in user/member value to the ad impression value of .0114 and you have an estimated overall value of .0866 or 20+ times where we closed yesterday. And that doesn't include any other revenue potential from this one deal or any other business activity currently being conducted by the company. Factor that in and TEN CENTS is not out of the question.
How accurate or reliable are these numbers? Who knows? This is just my way of looking at this investment from a long term perspective and the reason why I’ll be holding on to this one for a while. GLTA